Long-term assets are $800,current liabilities are $500,and long-term liabilities are $600.If the current ratio is 2.5 to 1,then current assets are
A)$200.
B)$625.
C)$1,250.
D)$2,000.

Question

Quizplus · Accepted Answer

The current ratio is calculated as current assets divided by current liabilities. Given the current ratio is 2.5 and current liabilities are $500, the current assets are 2.5 * $500 = $1,250.

Long-Term Assets Are $800,current Liabilities Are $500,and Long-Term Liabilities Are