If You Have Current Assets of $20,000 and Current Liabilities

question 58

Short Answer

If you have current assets of $20,000 and current liabilities of $10,000,then you
(a)have a current liquidity ratio of 2.
(b)are in poor shape with a liquidity ratio of 0.5.
(c)may have trouble paying your bills depending on their due dates.
(d)are overextended by $10,000

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Definitions:

Purchase Order

A formal document issued by a buyer to a seller, detailing the products, quantities, and agreed prices for products or services.

Point Estimate

A single value given as an estimate of a population parameter that is of interest, often derived from sample data.

Health Consciousness

Health consciousness refers to an individual's awareness and proactive behavior towards maintaining health and preventing disease.

Health Consciousness

An awareness of and making choices toward a healthy and fulfilling life.