A company has a current ratio of 2.0 and current assets of $550,000.What is its current liabilities balance?
A)2.0
B)$275,000
C)$550,000
D)$1,100,000

Name: A company has a current ratio of 2.0 and current assets of $550,000.What is its current liabilities balance? A)2.0 B)$275,000 C)$550,000 D)$1,100,000
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Question

Quizplus · Accepted Answer

Current ratio = current assets/current liabilities
2 = $550000/X
X = current liabilities = $550000/2 = $275000.

A Company Has a Current Ratio of 2