As the Accountant for Franks Retail Stores,you Must Calculate the Current

question 95

Multiple Choice

As the accountant for Franks Retail Stores,you must calculate the current ratio for the firm's last accounting period.The firm's current assets were $120,000,its fixed assets were $240,000,its current liabilities were $80,000,and its long-term liabilities were $60,000.Given these facts,what is the firm's current ratio?

• A) 1
• B) 1.5
• C) 2
• D) 3
• E) 4

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Definitions:

Board of Directors

A group of elected individuals representing shareholders, responsible for overseeing the activities and strategic direction of a company.

Proxy Voting

A process that allows shareholders to vote on corporate matters, such as the election of members to the board of directors, without physically attending the meeting.

Shareholder Authority

The legal powers granted to shareholders of a corporation, including voting on corporate matters and electing the board of directors.

Straight Voting

A method of voting on corporate directors where shareholders must vote for each board position separately, often disadvantaging smaller shareholders.