The current assets of Kile Company are $150,000. The current liabilities are $100,000. The current ratio expressed as a proportion is

Question

Quizplus · Accepted Answer

The current ratio is calculated as current assets divided by current liabilities. Therefore, current ratio = $150,000 ÷ $100,000 = 1.5 : 1. (Option A is incorrect because 150% does not represent the ratio. Option D is incorrect because it only shows the calculation of the ratio without expressing it as a proportion. Option C is incorrect because it shows the inverse of the ratio.)

The Current Assets of Kile Company Are $150,000