Information from Caine Company's Balance Sheet Is as Follows

question 62

Multiple Choice

Information from Caine Company's balance sheet is as follows:

What is Caine's current ratio?

• A)0.26 to 1
• B)0.30 to 1
• C)1.80 to 1
• D)3.78 to 1

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Definitions:

Preferred Stock

A special type of stock whose owners, though not generally having a say in running the company, have a claim to profits before other stockholders do.

Capital Lease

A lease agreement that grants a lessee the benefits and risks of ownership of the asset, typically recognized on the balance sheet.

Balance Sheet

A “snapshot” of an organization’s financial position at a given moment.