Use the Information in the Adjusted Trial Balance Presented Below

question 134

Multiple Choice

Use the information in the adjusted trial balance presented below to calculate the current ratio for Taron Company: $\begin{array}{|l|r|l|}\hline \text { Account Title } & \text { Dr. } & \text { Cr. } \\\hline \text { Cash } & \$ 23,000 & \\\hline \text { Accounts receivable } & 16,000 & \\\hline \text { Prepaid insurance } & 6,600 & \\\hline \text { Equipment } & 100,000 & \\\hline \text { Accumulated Depreciation-Equipment } & & \$ 50,000 \\\hline \text { Land } & 95,000 &\\\hline \text { Accounts payable } & & 17,000 \\\hline \text { Interest payable } & & 2,400 \\\hline \text { Unearned revenue } & & 5,000 \\\hline \text { Long-term notes payable } & & 30,000 \\\hline \text { Z. Taron, Capital } & & 136,200 \\\hline \text { Totals } & \$ 240,600 & \$ 240,600 \\\hline\end{array}$

• A).54.
• B)1.77.
• C)1.87.
• D)3.92.
• E)1.60.

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Definitions:

Investment Period

The duration for which funds are held in an investment before being withdrawn.

Compounded Annually

Refers to the process where interest is added to the principal sum at the end of each year, allowing the interest to earn interest in the subsequent year.

Inheritance

Assets received from a deceased person's estate by heirs or through a will.

Borrower's Payment

The amount of money a borrower is obligated to pay back to a lender according to the terms of the borrowing agreement.