Please Refer to the Following Information and Calculate the Current

question 40

Multiple Choice

Please refer to the following information and calculate the current ratio:

• A)0.25
• B)1.89
• C)0.53
• D)4.02

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Definitions:

Profit Per Unit

The amount of income that a company earns above its costs for producing one unit of a good or service.

Short Run

A period in which at least one input, such as capital, is fixed, allowing only some factors, like labor, to change in quantity.

Long Run

A period in economics during which all inputs, including capital, are variable, allowing firms to adjust all aspects of production in response to market changes.

Loss Per Unit

The amount of financial loss incurred for each unit of product sold or produced.