The current assets of Myers Company are $250000. The current liabilities are $100000. The current ratio expressed as a proportion is
A) 250%.
B) 2.5 : 1
C) .25 : 1
D) $250000 ÷ $100000.

Question

Quizplus · Accepted Answer

The current ratio is calculated by dividing current assets by current liabilities. 
Current ratio = Current assets / Current liabilities
Current ratio = $250000 / $100000
Current ratio = 2.5 : 1

The Current Assets of Myers Company Are $250000