The Following Contains Information from the Records of the Balfor

question 5

Multiple Choice

The following contains information from the records of the Balfor Architecture Firm. Balfor Architecture Firm
Selected Financial Information
December 31, 2017 Which of the following statements is an accurate interpretation of the current ratio of Balfor Architecture Firm? (Round your answer to two decimals.)

• A) The company has $2.19 of current assets for every $1.00 of liabilities.
• B) The company has $1.90 of current assets for every $1.00 of current liabilities.
• C) The company has $1.51 of current assets for every $1.00 of liabilities.
• D) The company has $0.61 of current assets for every $1.00 of current liabilities.

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Definitions:

Expense Accounts

Accounts used to track the costs incurred in a business's operational activities, not directly tied to the production of goods or services.

Operating Expenses

Costs associated with the day-to-day operations of a business, excluding costs directly associated with the production of goods or services.

Merchandising

Merchandising involves purchasing, displaying, and selling products to consumers, with strategies that aim to boost sales and profitability.

Service Enterprises

Businesses that provide intangible products or services to customers rather than tangible goods.