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Inessa [10]
2 years ago
5

The sum of cash, current investments, and accounts receivable divided by current liabilities equals the?

Business
1 answer:
Sergio [31]2 years ago
8 0

The sum of cash, current investments, and accounts receivable divided by current liabilities equals the (C) acid-test ratio.

<h3>What is the acid-test ratio?</h3>
  • The quick ratio, also known as the acid-test ratio, is a type of liquidity ratio in finance that measures a company's ability to use its near cash or quick assets to immediately extinguish or retire its current liabilities.
  • It is defined as the proportion of readily available or liquid assets to current liabilities.
  • Quick assets are current assets that can presumably be converted to cash quickly at close to book value.
  • A normal liquid ratio is defined as 1:1.
  • A company with a quick ratio of less than one is currently unable to fully repay its current liabilities.
  • The acid-test ratio equals the sum of cash, current investments, and accounts receivable divided by current liabilities.

Therefore, the sum of cash, current investments, and accounts receivable divided by current liabilities equals the (C) acid-test ratio.

Know more about acid-test ratio here:

brainly.com/question/25814739

#SPJ4

The correct question is given below:
The sum of cash, current investments, and accounts receivable divided by current liabilities equals the?

(A) current ratio

(B) asset turnover ratio

(C) acid-test ratio

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The closest answer is option A,$7649

Explanation:

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n is the year the cash flow relates to ,for instance year zero for the initial investment

NPV=-$54,000+$16,000/(1+12%)^1+$16,000/(1+12%)^2+$16,000/(1+12%)^3+$16,000/(1+12%)^4+($16,000+$7,000)/(1+12%)^5=$ 7,648.41  

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Raw Materials  $ 36,000 $ 69,000 $ 24.000

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Market risk premium can be obtained by calculating the difference between the expected return on the market and the risk-free rate.

In the question given, the risk rate fee refers to the US treasury bill.

Therefore,

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So, in the question given, the market risk premium is

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