The current ratio is a. used to evaluate a company's liquidity and short-term debt paying ability. b. is a solvency measure that indicated the margin of safety of a noteholder or bondholder. c. calculated by dividing current liabilities by current assets. d. calculated by subtracting current liabilities from current assets.

The current ratio is

a.	used to evaluate a company's liquidity and short-term debt paying ability.
b.	is a solvency measure that indicated the margin of safety of a noteholder or bondholder.
c.	calculated by dividing current liabilities by current assets.
d.	calculated by subtracting current liabilities from current assets.

Answer

a.	used to evaluate a company's liquidity and short-term debt paying ability.

Accounts payable $ 30,000 Accounts receivable 65,000 Accrued liabilities 7,000 Cash 20,000 Intangible assets 40,000 Inventory 72,000 Long-term investments 100,000 Long-term liabilities 75,000 Marketable securities 36,000 Notes payable (short-term) 20,000 Property, plant, and equipment 625,000 Prepaid expenses 2,000 ____ 9. Based on the above data, what is the amount of quick assets? a. $163,000 b. $195,000 c. $121,000 d. $56,000 ____ 10. Based on the above data, what is the amount of working capital? a. $238,000 b. $138,000 c. $178,000 d. $64,000 ____ 11. Based on the above data, what is the quick ratio, rounded to one decimal point? a. 2.4 b. 3.4 c. 2.1 d. 1.5

Accounts payable	$  30,000
Accounts receivable	65,000
Accrued liabilities	7,000
Cash	20,000
Intangible assets	40,000
Inventory	72,000
Long-term investments	100,000
Long-term liabilities	75,000
Marketable securities	36,000
Notes payable (short-term)	20,000
Property, plant, and equipment	625,000
Prepaid expenses	2,000

_
9.   Based on the above data, what is the amount of quick assets?

a.	$163,000
b.	$195,000
c.	$121,000
d.	$56,000

Answer

c.

$121,000

10.       Based on the above data, what is the amount of working capital?

a.	$238,000
b.	$138,000
c.	$178,000
d.	$64,000

Answer

c.

$178,000

            
11. Based on the above data, what is the quick ratio, rounded to one decimal point?

a.	2.4
b.	3.4
c.	2.1
d.	1.5

Answer

c.

2.1

Calculate

Calculate

Write the answer in scientific notation. 

Solution
= (1.44 x -3) x 10⁵ x 10^-7
=-4.32 x 10^5-7
=-4.32 x 10^-2

What is the solution set for |2x – 3| = 15?

What is the solution set for |2x – 3| = 15?

Solution
2x-3= 15
2x = 15 +3
2x = 18
divide by 2 both side, we have
x = 9
or
2x-3= -15
2x = -15 + 3
2x = -12
divide by 2 both side, we have
x = -6
So,
Solution Set = {(9,-6)}

Most companies that use standards set them at (Points: 4) the normal level. a conceivable level. the ideal level. last year's level.

1. Most companies that use standards set them at

• the normal level.
• a conceivable level.
• the ideal level.
• last year's level.

Answer

• the normal level.

An unfavorable materials quantity variance would occur if (Points: 4) more materials were purchased than were used. actual pounds of materials used were less than the standard pounds allowed. actual labor hours used were greater than the standard labor hours allowed. actual pounds of materials used were greater than the standard pounds allowed.

1. An unfavorable materials quantity variance would occur if

• more materials were purchased than were used.
• actual pounds of materials used were less than the standard pounds allowed.
• actual labor hours used were greater than the standard labor hours allowed.
• actual pounds of materials used were greater than the standard pounds allowed.

Answer
actual pounds of materials used were greater than the standard pounds allowed.

Ideal standards (Points: 4) are rigorous but attainable. are the standards generally used in a master budget. reflect optimal performance under perfect operating conditions. will always motivate employees to achieve the maximum output.

1. Ideal standards (Points: 4)

• are rigorous but attainable.
• are the standards generally used in a master budget.
• reflect optimal performance under perfect operating conditions.
• will always motivate employees to achieve the maximum output.

Answer

• reflect optimal performance under perfect operating conditions.