Complete the Following the Current Ratio for the Following: Total

question 74

Multiple Choice

Complete the following the current ratio for the following: Total current assets = $12,000; current liabilities = $10,000

• A)1.5
• B)1.7
• C).7
• D)1.2
• E)None of these

---

Definitions:

Periodic Inventory

An inventory accounting system where the inventory is updated and the cost of goods sold is calculated at the end of a period instead of after each sale.

Inventory Balance

Refers to the total value of all inventory a business has in stock at a specific point in time, including raw materials, work-in-progress, and finished goods.

Replacement Cost

The amount required to replace an asset at current prices, ensuring similar functionality or capacity.

Inventory Turnover

A measure of how many times a company's inventory is sold and replaced over a certain period, indicating the efficiency of inventory management.