Smith Corporation Has Current Assets of $11,400, Inventories of $4,000

question 110

Multiple Choice

Smith Corporation has current assets of $11,400, inventories of $4,000, and a current ratio of 2.6. What is Smith's quick or acid test ratio?

• A) 1.69
• B) 0.54
• C) 0.74
• D) 1.35

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Definitions:

Mental Processes

Internal, covert activities of the mind, such as thinking, reasoning, imagining, and remembering.

Behaviorist

A psychologist who studies and practices behaviorism, focusing on observable and measurable aspects of human and animal behaviors rather than internal processes like thinking or emotion.

Functionalism

A theory in psychology that emphasizes the purpose of consciousness and behavior, explaining psychological processes in terms of their role or function in helping individuals adapt to their environment.

Mental Processes

The operations of the mind that lead to perceptions, reasoning, emotions, and memories.