Using the Following Balance Sheet and Income Statement Data What

question 62

Multiple Choice

Using the following balance sheet and income statement data what is the current ratio? $$\begin{array}{l}\begin{array} { l r l c } \text { Current assets } & \$ 21,000 & \text { Net income } & \$ 45,000 \\\text { Current liabilities } & 12,000 & \text { Stockholders' equity } & 63,000 \\\text { Average assets } & 132,000 & \text { Total liabilities } & 27,000\end{array}\\\text { Total assets } \quad 90,000\end{array}$$

• A)0.78 : 1
• B)3.33 : 1
• C)0.57 : 1
• D)1.75: 1

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Definitions:

Several Kinds

A phrase indicating a variety of types or categories within a given group.

Stress

A physical or emotional response to demanding circumstances, leading to a feeling of strain or pressure.

Daily Hassles

Routine challenges of day-to-day life that can contribute to stress, such as traffic, work deadlines, and household chores.

Small But

Referring to something that is minor in size or amount yet holds significance or importance.