Long-term assets are $5,000,current liabilities are $700,and long-term liabilities are $3,000.If the current ratio is 3 to 1,then current assets are
A)$9,000.
B)$6,900.
C)$4,300.
D)$2,100.

Question

Quizplus · Accepted Answer

The current ratio is calculated as current assets divided by current liabilities. Given a current ratio of 3 to 1 and current liabilities of $700, current assets must be 3 times $700, which equals $2,100.

Long-Term Assets Are $5,000,current Liabilities Are $700,and Long-Term Liabilities Are