A) Nil. B) $6,000

question 44

Multiple Choice

• A) Nil.
• B) $6,000.
• C) $18,000.
• D) $36,000.

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Definitions:

Current Ratio

A financial metric assessing a firm's capacity to settle short-term debts or obligations due within a year, determined by dividing current assets by current liabilities.

Current Liabilities

Current Liabilities are obligations a company is expected to pay within the upcoming year, including accounts payable, short-term loans, and other accrued liabilities.

Liquidity

A measure of how easily assets can be converted into cash without significant loss in value, important for meeting short-term obligations.

Liquidity

The ease with which an asset can be converted into cash without affecting its market price.