Assume a Company Has a Current Ratio of 1

question 10

Multiple Choice

Assume a company has a current ratio of 1.8 and working capital equal to $48,000. If the company's current liabilities are equal to $60,000, its total current assets are:

• A)$ 10,800.
• B)$ 54,000.
• C)$ 6,000.
• D)$108,000.

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Definitions:

Private Property

Private property is land or belongings owned by individuals or corporations rather than the state, characterized by the legal right to exclude others from its use or benefits.

Private Arbitration

A dispute resolution process where parties choose an independent third party to make a decision regarding their dispute, outside of court proceedings.

Business Disagreement

A conflict or dispute arising between parties in a business context, often over contracts, negotiations, or operations.

Bank Loan

A sum of money borrowed from a bank that must be repaid with interest over a predetermined period.