is the firm's current ratio?
A)0.97
B)1.08
C)1.20
D)1.33
E)1.47

Name: is the firm's current ratio? A)0.97 B)1.08 C)1.20 D)1.33 E)1.47
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Question

Quizplus · Accepted Answer

The current ratio is defined as current assets divided by current liabilities. Using the values given, the current ratio would be:

Current assets = $200,000
Current liabilities = $150,000

Current ratio = $200,000 / $150,000 = 1.33

Therefore, the best choice for the current ratio is D, 1.33.

Is the Firm's Current Ratio