Use Rizwi Corporation's List of Accounts at December 31, 2016

question 164

Multiple Choice

Use Rizwi Corporation's list of accounts at December 31, 2016 to answer the following question. Rizwi Corporation
List of Accounts at December 31, 2016
$\begin{array}{lrlr}\text { Cash } & \$ 30,000 & \text { Accumulated depreciation } & \$ 12,000 \\\text { Merchandise inventory } & 14,000 &\text { Notes payable- } & 120,000 \\\text { Land } & 40,000&\text { Due12/31/2024 } & \\\text { Buildings } & 80,000&\text { Accounts payable } & 14,000 \\\text { Accounts receivable } &25,000& \text { Equipment } & 33,000 \\& & \text { Notes Payable- } & 14,000\\&&\text { Due07/01/2018 }\\\end{array}$ ? What is Rizwi Corp.'s current ratio?

• A) 0.48 to 1
• B) 2.00 to 1
• C) 2.55 to 1
• D) 2.86 to 1

---

Definitions:

Developing Shared Language

The process of creating common understanding and terminologies within a group to facilitate communication and collaboration.

Due Diligence

The comprehensive investigation or exercise of care that a reasonable business or person is expected to take before entering into an agreement or transaction with another party.

Primary Goals

The main objectives or targets that an individual, organization, or project aims to achieve.

Hedge Fund

An investment fund that employs diverse strategies to earn active return, or alpha, for its investors, often involving higher risk.