Assuming that they have no current bills other than those that are listed,what is their current ratio?
A)0.79 times
B)$5,000/$3,000
C)2 times
D)Not enough information available

Question

Quizplus · Accepted Answer

Current ratio is calculated by dividing current assets by current liabilities. In this case, current assets are $5,000 and current liabilities are $3,000, so the current ratio is:

Current Ratio = Current Assets / Current Liabilities
Current Ratio = $5,000 / $3,000
Current Ratio = 1.67 times

Therefore, the best choice is B, which is the calculated current ratio.

Assuming That They Have No Current Bills Other Than Those