A Company Has $45,600 in Current Assets; $111,320 in Total

question 19

Multiple Choice

A company has $45,600 in Current assets; $111,320 in Total assets; $67,500 in Current liabilities and $188,400 in Total liabilities.The company has a current ratio of:

• A) 0.68.
• B) 1.48.
• C) 0.24.
• D) 0.59.

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Definitions:

Consolidated Statement

Financial statements that aggregate the financial position and operations of a parent company and its subsidiaries, presenting them as a single economic entity.

Cash Flows

The aggregate monetary transactions entering and leaving a corporation, chiefly influencing its cash flow.

Consolidated Cost Of Goods Sold

The total cost of goods sold by a combined entity, including all subsidiaries, after eliminating intercompany transactions.

Noncontrolling Interest

A stake in a corporation where the shareholder owns less than a majority of the company's shares, without significant control over its strategic decisions.