Calculate the Current Ratio of the Organization from the Information

question 91

Multiple Choice

Calculate the current ratio of the organization from the information given below. Sales = $200,000; Gross Profit = $40,000; Total Assets = $450,000; Current Assets = $250,000; Current Liabilities = $300,000

• A)0.44
• B)0.56
• C)0.67
• D)0.83

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Definitions:

Diurnal

Pertaining to or active during the day, as opposed to nocturnal.

Nocturnal

Pertaining to or active during the night.

Activity

Any physical movement or tasks that involve the body or mind, contributing to the consumption of energy and engagement in various processes.

Circannual Rhythms

Circannual rhythms are biological processes or behaviors that follow a roughly annual cycle, allowing organisms to anticipate and prepare for seasonal changes in the environment.