Southport Industries Has Current Assets of $900,000 and a Current

question 103

Multiple Choice

Southport Industries has current assets of $900,000 and a current ratio is 2.50.Assume that the company prepays rent for 9 months in the amount of $40,000.The current ratio after this transaction is closest to:

• A)2.39.
• B)2.61.
• C)2.50.
• D)2.81.

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Definitions:

Cave Paintings

Prehistoric drawings or paintings found on cave walls, often depicting animals or humans, and considered significant in the study of human history and art.

Fossil Record

The accumulation of all discovered fossils and their placement in rock formations and sedimentary layers, which provides information about past life on Earth.

Early Human Populations

Groups of the earliest Homo sapiens and their predecessors, whose movements, adaptations, and cultural developments shaped human evolution.

Genetically Similar

Describes organisms that share a high degree of similarity in their genetic makeup or DNA sequences.