Oratz Company's current ratio at the end of 20 × 6 was closest to:
A) 0.51 to 1.
B) 0.57 to 1.
C) 1.23 to 1.
D) 1.26 to 1.

Name: Oratz Company's current ratio at the end of 20 × 6 was closest to: A) 0.51 to 1. B) 0.57 to 1. C) 1.23 to 1. D) 1.26 to 1.
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Question

Quizplus · Accepted Answer

The current ratio is calculated by dividing current assets by current liabilities. The choice closest to 1.23 to 1 suggests that Oratz Company's current assets were approximately 1.23 times its current liabilities at the end of 20×6.

Oratz Company's Current Ratio at the End of 20 ×