A company has current assets of $80,000, long-term assets of $150,000, current liabilities of $60,000, and long-term liabilities of $40,000. The current ratio is:

Question

Quizplus · Accepted Answer

The current ratio is calculated by dividing current assets by current liabilities. 
Current Ratio = Current Assets / Current Liabilities 
= $80,000 / $60,000 
= 1.33 
Therefore, the current ratio is 1.33, which is Choice B.

A Company Has Current Assets of $80,000, Long-Term Assets of $150,000