A Company Has Total Assets of $158,000, Current Assets of $92,000

question 94

Multiple Choice

A company has total assets of $158,000, current assets of $92,000, total liabilities of $68,000, and current liabilities of $36,000. What is the current ratio?

• A)1.4 to 1
• B)2.3 to 1
• C)2.6 to 1
• D)2.1 to 1

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Definitions:

Shifting Burden of Proof

A legal principle where the duty to prove or disprove a fact shifts from one party to another during the course of a legal proceeding.

Res Ipsa Loquitur

A legal doctrine that infers negligence from the very nature of an accident or injury in the absence of direct evidence on how any defendant behaved.

Finding of Negligence

A determination in law that an individual or organization failed to act with care, resulting in harm to another party.

Last-Clear-Chance Doctrine

A doctrine used by a plaintiff when the defendant establishes contributory negligence. If the plaintiff can establish that the defendant had the last opportunity to avoid the accident, the plaintiff may still recover, despite being contributorily negligent.