Using the Following Balance Sheet and Income Statement Data, What

question 70

Multiple Choice

Using the following balance sheet and income statement data, what is the current ratio? $\begin{array}{lrlr}\text { Current assets } & \$ 7,000 & \text { Net income } & \$ 15,000 \\\text { Current liabilities } & 4,000 & \text { Stockholders' equity } & 21,000 \\\text { Average assets } & 44,000 & \text { Total liabilities } & 9,000\\\text { Total assets } \quad 30,000\end{array}$ Average common shares outstanding was 10,000.

• A) 0.78 : 1
• B) 3.33 : 1
• C) 0.57 : 1
• D) 1.75: 1

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Definitions:

Model Significant

Refers to the degree to which a statistical model's parameters are meaningful and impactful for understanding the data.

5%

Often used as a significance level in hypothesis testing, indicating a 5 percent risk of concluding that a difference exists when there is no actual difference.

Model Significant

A statistical model that achieves significance levels indicating that it provides reliable predictions or insights.

Alpha

Often used in statistics to denote the level of significance, the threshold at which the null hypothesis is rejected in hypothesis testing.