Please Refer to the Following Information and Compute the Current

question 52

Multiple Choice

Please refer to the following information and compute the current ratio: $$\begin{array} { | l | r | r | } \hline & { \text { Debit } } &{ \text { Credit } } \\\hline \text { Cash } & \$ 4,500 & \\\hline \text { Accounts receivable } & 1,200 & \\\hline \text { Prepaid rent } & 700 & \\\hline \text { Land } & 20,000 & \\\hline \text { Equipment } & 4,000 & \\\hline \text { Accumulated depreciation } & & \$ 800 \\\hline \text { Accounts payable } & & 2,900 \\\hline \text { Salary payable } & & 600 \\\hline \text { Notes payable-long term } & & 9,000 \\\hline\end{array}$$

• A) 1.83
• B) 0.55
• C) 0.51
• D) 0.42

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Definitions:

Subcutaneous

Pertaining to or situated under the skin.

Intrathecal

Refers to the administration of medication or other substances directly into the space under the arachnoid membrane of the spinal cord.

Intramuscular

A technique for delivering drugs deep into muscle tissue to facilitate rapid absorption into the circulation system.

Topical

Pertaining to a specific area; local.