If Current Assets Amount to $150,total Assets $350,current Liabilities $65,and

question 31

Multiple Choice

If current assets amount to $150,total assets $350,current liabilities $65,and total liabilities $100,then the current ratio is

• A)2.12 to 1.
• B)2.31 to 1.
• C)3.03 to 1.
• D)3.50 to 1.

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Definitions:

Overhead Cost

Expenses that are not directly tied to production activities, such as rent, utilities, and general office expenses.

Machine Hours

A measure of production time where costs are allocated to products based on the number of hours machines are used in their manufacturing.

Actual Costing

A costing method that assigns actual costs of direct materials, direct labor, and overhead to products, instead of using estimated or standard costs.

Activity-Based Budgeting (ABB)

A method of budgeting where activities that incur costs in every function of an organization are recorded, analyzed and researched.