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The current ratio of a company is 8:1 and its acid-test ratio is 1:1. If the inventories and prepaid items amount to $633,000, what is the amount of current liabilities?(accounting Problem)

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 6MCQ

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The current ratio of a company is 8:1 and its acid-test ratio is 1:1. If the inventories and prepaid items amount to $633,000, what is the amount of current liabilities?(accounting Problem)

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