D- Prepaid expenses137 Accounts and notes payable (short term) 700,000Accumulated liabilitiesThe firm's current ratio and acid-test ratio are closest to what values?(a) 1.42; 0.73(b) 1.42; 0.79(c) 1.47; 0.73(d) 1.47; 0.7948,500120,000 A firm's balance sheet has the following data:$450,00025,000125,000560,000Cash on handMarket securitiesNet accounts and notes receivableRetailers' inventories

Formula: Current ratio = Current Assets / Current liability

|48,500 Prepaid expenses Accounts and notes payable (short term) 700,000 Accumulated liabilities The firm's current ratio and acid-test ratio are closest to what values? (a) 1.42; 0.73 (b) 1.42; 0.79 120,000

|48,500 Prepaid expenses Accounts and notes payable (short term) 700,000 Accumulated liabilities The firm's current ratio and acid-test ratio are closest to what values? (a) 1.42; 0.73 (b) 1.42; 0.79 120,000

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

D- Prepaid expenses
137 Accounts and notes payable (short term) 700,000
Accumulated liabilities
The firm's current ratio and acid-test ratio are closest to what values?
(a) 1.42; 0.73
(b) 1.42; 0.79
(c) 1.47; 0.73
(d) 1.47; 0.79
48,500
120,000

A firm's balance sheet has the following data:
$450,000
25,000
125,000
560,000
Cash on hand
Market securities
Net accounts and notes receivable
Retailers' inventories

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