Kingery Corporation Has Current Assets of $1,800,000 and Current Liabilities

question 20

Multiple Choice

Kingery Corporation has current assets of $1,800,000 and current liabilities of $750,000. If they pay $250,000 of their accounts payable what will their new current ratio be?

• A) 3.1:1
• B) 2.4:1
• C) 3.6:1
• D) 2.0:1

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Definitions:

Libido

A term used in psychoanalytic theory to denote the energy associated with sexual drives and desires.

Oedipus Complex

A Freudian theory that suggests a child's unconscious sexual desire for the opposite-sex parent and jealousy toward the same-sex parent.

Unconscious

A term in psychology referring to the part of the mind that is not currently in focal awareness, containing processes, memories, and desires beyond conscious access.

Preconscious

The part of the mind containing information that is not currently in focal awareness but can easily be accessed, as described in psychoanalytic theory.