A Company Has Current Assets of $450,000 and a Current

question 157

Multiple Choice

A company has current assets of $450,000 and a current ratio is 2.5.Assume that the company prepays rent for 9 months in the amount of $20,000.The current ratio after this transaction is closest to:

• A) 2.39.
• B) 2.61.
• C) 2.5.
• D) 2.81.

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Definitions:

Heterotrophs

Organisms that obtain their energy by consuming other living or deceased organisms, unable to synthesize their own food.

Photosynthesize

The process by which green plants, algae, and certain bacteria convert light energy into chemical energy, producing oxygen as a byproduct.

Grana

Stacks of thylakoids in the chloroplasts of plant cells, where photosynthesis takes place.