The Following Financial Data Have Been Taken from the Records

question 28

Multiple Choice

The following financial data have been taken from the records of CPZ Enterprises.
$\begin{array}{l|r|}\hline \text { Accounts Receivable } & \$ 200000 \\\hline \text { Accounts Payable } & \$ 80000 \\\hline \text { Bonds Payable, Due in Ten Years } & \$ 300000 \\\hline \text { Cash } & \$ 100000 \\\hline \text { Interest Payable, Due in Three Months } & \$ 10000 \\\hline \text { Inventory } & \$ 440000 \\\hline \text { Land } & \$ 250000 \\\hline \text { Notes Payable, Due in Six Months } & \$ 50000 \\\hline\end{array}$

-What is the current ratio for CPZ Enterprises?

• A) 1.68.
• B) 2.14.
• C) 5.00.
• D) 5.29.

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Definitions:

Voting Stock

Shares that give the shareholder the right to vote on corporate matters, such as electing directors and approving company policies.

Book Value

The value of an asset according to its balance sheet account balance, taking into account the cost of the asset minus depreciation.

Fair Value

The estimated market price of an asset or liability in an orderly transaction between market participants at the measurement date.

Partial Equity Method

An accounting approach used when a company holds a significant influence, but not control, over an investee, recognizing a portion of the investee's income proportional to ownership stake.