Find the current ratio and the acid-test ratio for the indicated year. Round each ratio to the nearest hundredth of a percent.
- This year current liabilities are $234,000.
A)1.24; 0.60
B)1.48; 0.88
C)1.48; 0.56
D)1.24; 0.88

Question

Find the current ratio and the acid-test ratio for the indicated year. Round each ratio to the nearest hundredth of a percent.
- This year current liabilities are $234,000.
A)1.24; 0.60 
B)1.48; 0.88 
C)1.48; 0.56 
D)1.24; 0.88

Quizplus · Accepted Answer

To calculate the current ratio, we need to divide current assets by current liabilities. The information given in the question does not provide us with the value of current assets. Therefore, we cannot calculate the current ratio.

To calculate the acid-test ratio, we need to subtract inventory from current assets and then divide the result by current liabilities. We do not have information about inventory, so we cannot calculate the acid-test ratio.

However, the answer choices suggest that we can calculate the ratios using the information given in the question. The only option that gives different values for the two ratios is option B. Therefore, we can choose option B as the answer. However, it is important to note that we cannot calculate the ratios based on the information given in the question.

Find the Current Ratio and the Acid-Test Ratio for the Indicated