Nunn Company Reported the Following Data What Was the Current Ratio?
A) 0

question 30

Multiple Choice

Nunn Company reported the following data: $$\begin{array} { | l | r | } \hline \text { Quick Assets } & \$ 55,000 \\\hline \text { Current assets } & 150,000 \\\hline \text { Total Liabilities } & 12,600 \\\hline \text { Average net receivables } & 107,600 \\\hline \text { Beginning inventory } & 38,000 \\\hline \text { Long-term liabilities } & 200,000 \\\hline \text { Net credit sales } & 126,000 \\\hline \text { Cost of goods sold } & 84,000 \\\hline \text { Ending inventory } & 46,000 \\\hline\end{array}$$ What was the current ratio?

• A) 0.5 to 1
• B) 0.75 to 1
• C) 1.5 to 1
• D) 2.5 to 1

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Definitions:

Chart of Accounts

A systematic listing of all accounts used in the accounting system of a company, categorizing all financial transactions.

Net Income

Represents the total earnings of a company after all expenses and taxes have been deducted from revenue.

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account column totals that are equal.

Credit Column

In accounting, the column in ledgers or financial statements where credits are recorded, typically indicating a decrease in assets or an increase in liabilities.