Gnas Corporation's total current assets are $252,000, its noncurrent assets are $632,000, its total current liabilities are $188,000, its long-term liabilities are $518,000, and its stockholders' equity is $178,000. The current ratio is closest to:
A) 1.34
B) 0.75
C) 1.42
D) 1.06

Question

Quizplus · Accepted Answer

The current ratio is calculated as total current assets divided by total current liabilities. For Gnas Corporation, this is $252,000 / $188,000 = 1.34.

Gnas Corporation's Total Current Assets Are $252,000, Its Noncurrent Assets