Harry's Bikes' current assets are $400 million and its current liabilities are $250 million. Its current ratio is 0.63.

Question

Quizplus · Accepted Answer

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

Current ratio = Current assets / Current liabilities

Current ratio = 400 million / 250 million

Current ratio = 1.6

Therefore, the current ratio is 1.6, not 0.63. The statement is false.

Harry's Bikes' Current Assets Are $400 Million and Its Current