RBW CorpHas Cash of $48,000; Short-Term Notes Payable of $35,000,accounts Receivable

question 88

Multiple Choice

RBW Corp.has cash of $48,000; short-term notes payable of $35,000,accounts receivable of $100,000; accounts payable of $120,000; inventories of $200,000; and accruals of $90,000.What is RBW's current ratio?

• A) 1.57
• B) 2.71
• C) 1.42
• D) 0.64

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Definitions:

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a data set, giving more weight to some numbers than others.

Basic Earnings

The net income earned by a company divided by the number of outstanding shares, providing a measure of the company’s profitability on a per-share basis.

Common Stock

A type of security that represents ownership in a corporation, granting shareholders voting rights and a share in the company's profits via dividends.

Stock Options

Financial instruments allowing the possessor to buy or sell shares at an agreed upon price before a certain deadline, without being compelled to do so.