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:

Sample Mean

The average value obtained from a sample, a subset of a larger population.

Population Mean

The average of a set of values in the entire population.

Margin of Error

An expression of the extent to which a sample statistic may differ from the true population parameter; it quantifies uncertainty in estimation.

Z Value

A measure in statistics that represents the number of standard deviations a data point is from the mean.