A Company Has Total Assets of $350,000 Consisting of Current

question 97

Multiple Choice

A company has total assets of $350,000 consisting of current assets of $115,000, property, plant, and equipment of $200,000, and other assets of $35,000. The company has total liabilities of $100,000 consisting of current liabilities of $65,000 and other liabilities of $35,000. What is the current ratio?

• A)3.50
• B)1.15
• C)1.77
• D)5.38

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Definitions:

Forming Department

A section within a manufacturing process where raw materials are shaped or formed into parts before being assembled into final products.

Manufacturing Overhead

All indirect costs associated with the production process, such as utilities, maintenance, and factory supervisor salaries, not directly tied to the production of goods.

Customizing Department

A specialized department within a company focused on altering products to meet specific customer requirements or preferences.

Customizing Department

A segment within a manufacturing or production process focused on tailoring products to meet specific customer requirements or specifications.