The finance managers collected the following information for their firm: Total Assets = $60,000; Current Assets = $10,000; Long-term Liabilities = $100,000; Current Liabilities = $8000. What is the current ratio?
A) 2.50
B) 2.00
C) 1.25
D) 1.00

Question

Quizplus · Accepted Answer

The current ratio is calculated as Current Assets divided by Current Liabilities. Therefore, the current ratio = $10,000 / $8,000 = 1.25.

The Finance Managers Collected the Following Information for Their Firm