A BUSINESS HAS CURRENT ASSETS OF $80,000AND CURRENT LIABILITIES OF $40,000. WHATIS ITS CURRENT RATIO?A) 1.0B) 1.5C) 2.0D) 2.5

Step 1: Introduction to ratio analysisRatio analysis is a method used to analyze financial…

Answered: A BUSINESS HAS CURRENT ASSETS OF…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 15MCQ: Hummel Inc. has $30,000 in current assets and $15,000 in current liabilities. What is Hummels...

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Assume that a company has current assets of R60 000, current liabilities of R5 000 and prepaid expenses of R5 000. Calculate the quick ratio of the company? Select one: a. 1.86 b. 0.58 c. 1.71 d. 12
1. If current assets amounted to P600,000 and current liabilities amounted to P200,000, what is the current ratio of the entity? *a. P800,000b. P400,000c. 3d. 1/3 3. If net sales is P200,000 and the average accounts receivable is P50,000, what is the accounts receivable turnover ratio? *a. 4b. 1/4c. P150,000d. P250,000 5. If total assets amounted to P800,000 and total liabilities amounted to P200,000, what is the debt to equity ratio? *a. 4b. 0.3333c. 0.25d. 3
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Ans
What does a current ratio of 2,4 mean?a) The company has 2,4 lira of equity for every lira of current liabilitiesb) The company has 2,4 liras current assets for every lira of current liabilitiesc) The company has 2,4 lira of noncurrent assets for every lira of current liabilitiesd) The company 2,4 lira of total assets for every lira of current liabilities
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If current assets are 112,000 and current liabilities are 56,000.00 what is the current ratio?
A company's current ratio is 1.5. Its current liabilities are $150,000. What are its current assets? O $100,000 $300,000 O $225,000 O $75,000
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A BUSINESS HAS CURRENT ASSETS OF $80,000 AND CURRENT LIABILITIES OF $40,000. WHAT IS ITS CURRENT RATIO? A) 1.0 B) 1.5 C) 2.0 D) 2.5