A Company Has Current Assets of $76,000, Long-Term Assets of $150,000

question 58

Multiple Choice

A company has current assets of $76,000, long-term assets of $150,000, current liabilities of $43,000, and long-term liabilities of $35,000. The current ratio is:

• A)0.79.
• B)3.40.
• C)1.77.
• D)2.17.

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Definitions:

Face Value

The nominal value or dollar value of a security stated by the issuer, typically referring to the value stated on a coin, banknote, stamp, or bond.

Straight-Line Method

A depreciation method that allocates an asset's cost evenly over its useful life.

Accrued Interest

Interest that has been incurred but not yet paid, typically reported as a liability on the balance sheet until it is paid out.

Premiums

Additional amounts paid over the normal cost or value, often related to insurance policies or bond prices above their face value.