The current assets of Key Corporation are $360,000. The current liabilities are $240,000. The current ratio expressed as a ratio is:
A)150%
B)1.5:1
C)0.7:1
D)$360,000 ÷ $240,000

Question

Quizplus · Accepted Answer

The current ratio is calculated by dividing current assets by current liabilities. In this case, it would be $360,000/$240,000 = 1.5:1, which is expressed as a ratio. Therefore, the best choice is B, which correctly shows the current ratio as 1.5:1.

The Current Assets of Key Corporation Are $360,000