A company reports the following in relation to its latest financial year:
$$\begin{array} { l r }
\text { Current assets } & \$ 175 \
\text { Non-current assets } & 300 \
\text { Current liabilities } & 50 \
\text { Non-current liabilities } & 250
\end{array}$$ Writing a cheque for $25 to pay off some long-term debentures payable means that the current ratio will be:
A) 7.0 times
B) 3.0 times
C) unchanged
D) 5.5 times

Question

A company reports the following in relation to its latest financial year:
$$\begin{array} { l r } 
\text { Current assets } & \$ 175 \
\text { Non-current assets } & 300 \
\text { Current liabilities } & 50 \
\text { Non-current liabilities } & 250
\end{array}$$ Writing a cheque for $25 to pay off some long-term debentures payable means that the current ratio will be:
A) 7.0 times
B) 3.0 times
C) unchanged
D) 5.5 times

Quizplus · Accepted Answer

The Answer of A company reports the following in relation to its latest financial year:
$$\begin{array} { l r } 
\text { Current assets } & \$ 175 \
\text { Non-current assets } & 300 \
\text { Current liabilities } & 50 \
\text { Non-current liabilities } & 250
\end{array}$$ Writing a cheque for $25 to pay off some long-term debentures payable means that the current ratio will be:
A) 7.0 times
B) 3.0 times
C) unchanged
D) 5.5 times

A Company Reports the Following in Relation to Its Latest