Table 4-5
Selected Accounting Data for Dustman Consulting Follows -Referring to Table 4-5, the Current Ratio Is:
A)0

question 36

Multiple Choice

Table 4-5
Selected accounting data for Dustman Consulting follows: $$\begin{array} { | l | r | } \hline \text { Current assets } & \$ 74,000 \\\hline \text { Current liabilities } & 44,000 \\\hline \text { Property, plant and } & \\\text { equipment } & 95,000 \\\hline \text { Long-term liabilities } & 60,000 \\\hline \text { Total revenues } & 50,000 \\\hline \text { Total expenses } & 30,000 \\\hline\end{array}$$
-Referring to Table 4-5, the current ratio is:

• A)0.59.
• B)1.68.
• C)0.71.
• D)1.41.

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Definitions:

Current Liabilities

A company's debts or obligations that are due to be paid to creditors within one year.

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term liquidity of the company.

Current Ratio

An indicator assessing a corporation's capability to settle its obligations that are due in less than one year, focusing on short-term liquidity.

Acid-Test Ratio

A financial metric that measures a company's ability to pay off its short-term liabilities with its quick assets.