If the Current Ratio Is 2

question 83

Multiple Choice

If the current ratio is 2.5 to 1, net income is $6,000, and current liabilities are $18,000, how much is working capital?

• A)$ 6,000
• B)$ 24,000
• C)$ 27,000
• D)$ 45,000

---

Definitions:

Arch

A curved structural member that spans an opening and is generally composed of wedge-shaped blocks (voussoirs) that transmit the downward pressure laterally. See also thrust.

Lost Wax

A method of metal casting in which a molten metal is poured into a mold that has been created using a wax model, which is then melted away and lost.

Repoussé

Formed in relief by beating a metal plate from the back, leaving the impression on the face. The metal sheet is hammered into a hollow mold of wood or some other pliable material and finished with a graver. See also Relief.

Drilling

The process of making holes in a solid substrate by using a rotating tool called a drill, often used in construction, manufacturing, and resource extraction.