If the Current Ratio Is 2

question 83

Multiple Choice

If the current ratio is 2.5 to 1, net income is $6,000, and current liabilities are $18,000, how much is working capital?

• A)$ 6,000
• B)$ 24,000
• C)$ 27,000
• D)$ 45,000

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Definitions:

American

Pertaining to the United States of America or its inhabitants.

Spectatorship

The act of observing or watching an event, artwork, or performance as a spectator, often engaging with visual and auditory senses.

Commercialization

The process of developing or transforming goods, services, ideas, or events to be marketable to the public for the purpose of generating profit.

Conglomeration

A corporation that consists of several different companies operating in diverse industries.