If the Current Ratio Is 2 to 1 and Current

question 118

Multiple Choice

If the current ratio is 2 to 1 and current assets equal $200,000, how much is working capital?

• A)$0
• B)$100,000
• C)$200,000
• D)$300,000

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Definitions:

Reliability

The degree to which a system, component, or process consistently performs its intended function under specified conditions over time.

Function Properly

To function properly means to operate or perform as intended or expected, usually referring to machines, systems, or organs within living organisms.

System Reliability

The measure of a system's ability to perform its required functions under stated conditions for a specified period of time.

Probability

A measure of the likelihood of a specific event or outcome, expressed as a number between 0 and 1.