Increasing c while holding n constant decreases the ________ risk and increases the ________ risk

Which of the following is true of the acid-test ratio?

A) It measures a company's ability to pay its current liabilities. B) It measures the ability of the company to earn net income. C) It measures a company's ability to meet its short-term obligations with cash and cash equivalents. D) It indicates how much cash could be realized by selling the inventory.

A hardware merchant using the FIFO method of valuing inventory has 300 hammers remaining in inventory. The merchant purchased hammers over a three month-period as follows: 120 purchased at $3.50 on April 1, 150 purchased at $3.62 on May 1, and 150 purchased at $3.72 on June 1 . Compute the value of the ending inventory of hammers at FIFO cost