Ask Question
BusinessBusiness
27 June, 21:43

The trial balance of a company included the following account balances: Cash, $25,000; Short-Term Investments, $10,000; Accounts Receivable, $40,000; Inventory, $90,000; and Prepaid Insurance, $12,000. Its quick assets total:

A. $35,000

B. $125,000

C. $75,000

D. $165,000

E. $50,000

+2
Answers (2)
  1. 27 June, 21:50
    0
    Its quick assets total is $75,000. The right answer is C.

    Explanation:

    In order to calculate the company's quick assets total we need to check according to the data, which of the account balances of the company are quick assets.

    Hence, Quick assets are the following:

    Cash $ 25,000

    Short Term Investments $10,000.

    Accounts Receivable $40,000.

    Therefore, Total Quick Assets=$ 25,000 + $10,000 + $40,000 = $75,000
  2. 27 June, 22:09
    0
    C. $75,000

    Explanation:

    All the current assets which can be quickly converted into cash are the quick assets. Inventory and Prepaid Insurance are not the p[art of this because these take much longer time to convert into cash than other current assets. Receivable has more liquidity than inventory because it takes less time to recover.

    Cash $25,000

    Short-Term Investments $10,000

    Accounts Receivable $40,000

    Total Quick Assets $75,000
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “The trial balance of a company included the following account balances: Cash, $25,000; Short-Term Investments, $10,000; Accounts ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
It is a consumer's responsibility to stay informed about product recalls. true false
Answers (1)
A hostile interaction between people over the internet is called A webout B webcast C flame Dflash
Answers (2)
Open market operations are the buying and selling of Federal Reserve Notes in the open market. means by which the Fed supplies the economy with currency. buying and selling of government securities by the Fed.
Answers (1)
John and Mary Billings own a condominium with an assessed value of $110,000. If the tax rate is 25 mills per $1.00 of assessed valuation, how much tax do they pay? A. $1,420 B. $1,840 C. $1,200 D. $2,750
Answers (1)
Issued a note with the proceeds used to finance the cost of acquiring journal entry
Answers (1)
New Questions in Business
Your business uses the allowance method to account for uncollectible receivables. At the beginning of the year, Allowance for uncollectible accounts had a credit balance of $ 1 comma 000.
Answers (1)
Suppose you have a choice of working full-time during the summer or attending summer school full-time. Summer tuition and books are $3,000. If you worked, you could make $5,000. Your rent is $1,000 for summer, regardless of your choice.
Answers (1)
Which phrase defines complementary goods
Answers (1)
If a company's current assets increase, what might we assume about their inventory levels? a) It increasedb) It decreasedc) It stayed the samed) We don't have enough information to decide
Answers (1)
What is the effect of import restrictions on prices? a. they cause prices to drop. b. they cause prices to rise. c. they often cause prices to rise steeply and then drop. d. they usually do not have any lasting effect on price?
Answers (1)
Home » Business » The trial balance of a company included the following account balances: Cash, $25,000; Short-Term Investments, $10,000; Accounts Receivable, $40,000; Inventory, $90,000; and Prepaid Insurance, $12,000. Its quick assets total: A. $35,000 B.
Sign Up Forgot Password?