Sassy Hair Products has current assets of $26,000 and current liabilities of $16,500. Its current ratio is 0.6 to 1.

Name: Sassy Hair Products has current assets of $26,000 and current liabilities of $16,500. Its current ratio is 0.6 to 1.
Brand: Quizplus
Rating: 4.8 (45 reviews)

Question

Quizplus · Accepted Answer

The current ratio is calculated by dividing current assets by current liabilities. In this case, the current ratio would be 26,000/16,500 = 1.58 to 1, not 0.6 to 1. Therefore, the statement is false.

Sassy Hair Products Has Current Assets of $26,000 and Current