If the Current Ratio Is 3

question 92

Multiple Choice

If the current ratio is 3.2, and the current liabilities are $110,000, what is the amount of current assets?

• A)$320,000
• B)$ 34,375
• C)$176,000
• D)$352,000

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Definitions:

Receivable Contract

An agreement where one party has the right to receive a payment or series of payments from another party.

Discount Rate

The interest rate used in discounted cash flow (DCF) analysis to determine the present value of future cash flows.

Compounded Monthly

A calculation method where interest is added to the principal balance on a monthly basis, resulting in interest on interest.

Equal Payments

A series of payments that are the same in amount, typically made at regular intervals over a specified period of time.