If current assets amount to $150,total assets $350,current liabilities $65,and total liabilities $100,then the current ratio is
A)2.12 to 1.
B)2.31 to 1.
C)3.03 to 1.
D)3.50 to 1.

Question

Quizplus · Accepted Answer

Current ratio is calculated by dividing current assets by current liabilities.

Current ratio = Current assets / Current liabilities

Given: 
Current assets = $150 
Total assets = $350 
Current liabilities = $65 
Total liabilities = $100

Using the formula:

Current ratio = Current assets / Current liabilities 
= $150 / $65 
= 2.31 to 1

Therefore, the current ratio is 2.31 to 1, and the best choice is B.

If Current Assets Amount to $150,total Assets $350,current Liabilities $65,and