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:

Implicit Knowledge

The type of knowledge that is acquired through exposure and experience, without conscious effort or awareness, and is difficult to articulate.

Intuitions

The ability to understand something immediately, without the need for conscious reasoning.

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Acquired knowledge or skills through study, experience, or teaching.

Capital Punishment

The legally authorized killing of someone as a punishment for a crime, often debated in moral, legal, and ethical contexts.