The Current Assets of Orangette Company Are $292,500

question 108

Multiple Choice

The current assets of Orangette Company are $292,500.The current liabilities are $130,000.The current ratio expressed as a proportion is

• A)225%.
• B)2.25:1.
• C).44:1.
• D)$130,000 ÷ $292,500.

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Definitions:

Amortized

The gradual reduction of a debt over a period of time through regular payments of principle and interest.

Intangible Assets

Assets that lack physical substance but hold value for a company, such as patents, trademarks, and goodwill.

Required Disclosure

Information that companies are obligated to provide in their financial reports to ensure transparency and to comply with regulatory standards and accounting principles.

Amortization

The process of gradually writing off the initial cost of an intangible asset over its useful life.