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:

Pourable

Having a consistency or thickness that allows a substance to flow or be poured easily.

Baillargeon

A psychologist known for her work in the field of developmental psychology, particularly in infants' understanding of the physical world.

Violation-of-Expectation Techniques

Experimental methods used in cognitive and developmental psychology to study understanding and expectation by observing responses to events that violate normal expectations.

Infants' Knowledge

The information or understanding possessed by infants, often concerning their immediate environment and needs.