Solstice Corporation Has Current Assets of $10 Million and Current

question 43

Multiple Choice

Solstice Corporation has current assets of $10 million and current liabilities of $8 million. Solstice's current ratio is ________ and its net working capital is ________.

• A) 1.25, $10 million
• B) 1.25, $2 million
• C) 2, $1.25 million
• D) .8, ($2 million)

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Definitions:

Ego-Ideal

Part of the psychoanalytic theory, representing an individual's personal standard of what is morally and ethically right or wrong.

Personality

The amalgamation of qualities that shapes a person's distinctive individuality.

Rationalization

A defense mechanism where controversial behaviors or feelings are justified and explained in a seemingly rational or logical way to avoid the true explanation.

Defense Mechanism

Psychological strategies unconsciously used by individuals to protect themselves from anxiety and confrontations with unpleasant aspects of reality.