[The Following Information Applies to the Questions Displayed Below

question 47

Multiple Choice

[The following information applies to the questions displayed below.]
Shown below are selected data from the balance sheet of Bill's Auto Parts,a retail store (dollar amounts are in thousands) :

-200 What is the current ratio?

• A)1.2 to 1
• B)Less than 2 to 1,but not 1.2 to 1
• C)2.6 to 1
• D)More than 2 to 1,but not 2.6 to 1

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Definitions:

Short Run

A period during which at least one factor of production is considered fixed and cannot be varied.

Long Run

In the long run refers to an extended period of time during which all factors of production and costs can be fully adjusted, often used in economics to discuss theoretical outcomes.

Tax Purposes

The reason or context within financial and legal frameworks for which taxes are assessed, recorded, and paid, influencing financial decisions and reporting.

Existing Firm

A company or business that currently operates within a market, as opposed to new entrants or startups.