If the Current Ratio Is 3 to 1 and the Working

question 60

Multiple Choice

If the current ratio is 3 to 1 and the working capital is $100,000,then the current assets are

• A)$150,000.
• B)$200,000.
• C)$300,000.
• D)$450,000.

---

Definitions:

Personal Residence

A property where an individual lives for most of the time and considers it their primary place of residence.

Recognized Gain

The portion of profit or loss from the sale of an asset that must be reported on a taxpayer's income tax.

Sales Commission

A portion of the sale price of goods or services paid to the salesperson as a reward for making the sale.

Wash Sale Rules

IRS regulations that disallow the claim of a capital loss for tax purposes if a substantially identical security is purchased within 30 days before or after the sale.