B Company provided the balance sheet below: Accounts payable 150 Cash 225 Accruals 250 Accounts receivable 600 Inventory 475 Notes payable 425 Current liabilities 825 Current assets 1,300 1,000 Net fixed assets Long-term debt 625 Common equity 325 Retained earnings 525 Total liab. & Total assets 2.300 2300 equity Compute for the Acid-test ratio. (2 decimal places)

B Company provided the balance sheet below: Accounts payable 150 Cash 225 Accruals 250 Accounts receivable 600 Inventory 475 Notes payable 425 Current liabilities 825 Current assets 1,300 1,000 Net fixed assets Long-term debt 625 Common equity 325 Retained earnings 525 Total liab. & Total assets 2.300 2300 equity Compute for the Acid-test ratio. (2 decimal places)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

B Company provided the balance sheet below:

Accounts

payable

150

Cash

225

Accruals

250

Accounts receivable 600

Inventory

475

Notes payable 425

Current

liabilities

825

Current assets

1,300

1,000

Net fixed assets

Long-term debt 625

Common equity 325

Retained

earnings

525

Total liab. &

Total assets

2.300

2300

equity

Compute for the Acid-test ratio. (2 decimal places)

Definition Definition Money that the business will be receiving from its clients who have utilized the credit provided to buy its goods and services. The credit period typically lasts for a short term, lasting from a few days, a few months, to a year.

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