Erastic Corporation has $20,000 in cash, $11,000 in marketable securities, $43,000 in account receivable, $52,000 in inventories, and $48,000 in current liabilities. The corporation's current assets consist of cash, marketable securities, accounts receivable, and inventory. The corporation's acid-test ratio is closest to:
A. 2.63
B. 1.54
C. 1.31
D. 0.90
Answer: B
You might also like to view...
A company's written promise to pay (in the form of a promissory note) a future amount is a(n):
A. Unearned revenue. B. Note payable. C. Account receivable. D. Credit account. E. Prepaid expense.
In relation to an ordinary annuity paid in any given year, an annuity due is
A) a larger amount. B) a smaller amount. C) an equal amount. D) an unrelated amount
Which of the following statements is not correct concerning the elements of the cash conversion cycle time?
A. The higher the number of days in the cash conversion cycle, the more efficiently the company is managing its cash. B. Lean manufacturers may reduce the total cash conversion cycle time. C. The cash conversion cycle measures the average time it takes to convert cash outflows into cash inflows from customers. D. Effectively managing working capital is important for businesses to survive and profit. E. The cash conversion cycle is based on accounts receivable, accounts payable, and inventory.
Suppose that a highway is governed by a use fee charged to motorists that is based on congestion, operation and maintenance. The total traffic t is used to determine the cost of 5t2. What is the marginal cost?
A) 5 B) 5t C) 10 D) 10t