If the Current Ratio Is 3 to 1 and the Working

question 60

Multiple Choice

If the current ratio is 3 to 1 and the working capital is $100,000,then the current assets are

• A)$150,000.
• B)$200,000.
• C)$300,000.
• D)$450,000.

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Definitions:

Principal

The main party involved in a financial transaction or agreement, such as the amount of money borrowed in a loan, or a primary actor in a contract.

Implied Warranty

A legal concept that guarantees that a product or service sold will perform as expected, even if not explicitly promised by the seller.

Authority

The capacity or entitlement to direct actions, decide outcomes, and command adherence.

Sue Estate

The legal action taken against a deceased person's estate to settle debts or disputes.