Given the Following Information, Calculate the Current Ratio: Liquid Assets

question 8

Multiple Choice

Given the following information, calculate the current ratio: Liquid assets = $5,000
Monthly credit payments = $800
Monthly savings = $760
Net worth = $75,000
Current liabilities = $2,000
Take-home pay = $2,300
Gross income = $3,500
Monthly expenses = $2,050

• A) 2.44
• B) 2.50
• C) 6.25
• D) 0.16
• E) 0.41

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Definitions:

Marginal Social Cost

The comprehensive expense to society for creating another unit of a product or service, encompassing both individual costs and any external factors.

Pollution

The occurrence or release of harmful or toxic materials into the environment.

External Costs

Costs that are not borne by the parties to a transaction but are imposed on others, such as pollution affecting non-participants.

Output

The amount of goods or services produced by a company, industry, or economy in a given period.