Question
A classified balance sheet showed the following amounts: cash $5,000; short-term investments $2,000; equity investment $3,000; accounts receivable $3,000; prepaid expenses $1,000; and goodwill $2,000.
A classified balance sheet showed the following amounts: cash $5,000; short-term investments $2,000; equity investment $3,000; accounts receivable $3,000; prepaid expenses $1,000; and goodwill $2,000. If current liabilities were $4,000, what would be the acid-test ratio?
A. 2.00
B. 2.50
C. 2.75
D. 4.00
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Business Statistics
Authors: Norean Sharpe, Richard Veaux, Paul Velleman
3rd Edition
978-0321944726, 321925831, 9780321944696, 321944720, 321944690, 978-0321925831
