Use This Balance Sheet and Income Statement to Answer the Following

question 68

Multiple Choice

Use this balance sheet and income statement to answer the following question. The current ratio for Abner Systems is (after rounding to two decimal places

• A) .67.
• B) 1.25.
• C) 1.13.
• D) 1.50.

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Definitions:

Net Income

A company's remaining earnings after deducting all taxes and costs from the complete revenue.

Income Splitting

A tax strategy used to transfer income from a higher-tax-rate taxpayer to a lower-tax-rate taxpayer to reduce the total tax paid.

Salary Allowances

Additional monetary benefits provided to employees on top of their regular salary, potentially for specific purposes or expenses.

Capital Account

An account on a country's balance of payments that records transactions involving the purchase and sale of assets, representing changes in ownership of international assets.