Harry's Home Services has current liabilities of $450,000, current assets of $500,000, and profits of $80,000. Which of the following is the current ratio for Harry's business?
A) 0.17
B) 0.9
C) 1.11
D) 16

Question

Quizplus · Accepted Answer

The current ratio is calculated by dividing current assets by current liabilities. For Harry's Home Services, the current ratio is $500,000 / $450,000 = 1.11.

Harry's Home Services Has Current Liabilities of $450,000, Current Assets