GTO Division Has $14,000 in Current Assets, $2,000 in Accounts

question 37

Multiple Choice

GTO Division has $14,000 in current assets, $2,000 in accounts payable, and $2,000 in unearned sales revenue. What is the division's current ratio?

• A)1.75
• B)2.25
• C)3.00
• D)3.50

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Definitions:

Truth-in-Lending Act

Legislation at the federal level intended to facilitate the informed use of credit by consumers by mandating the disclosure of its terms and costs.

Total Amount Financed

In a loan, the total sum of money provided, including the principal and any additional fees or charges by the lender.

Payments Due Dates

Specific dates by which payments for utilities, loans, credit cards, and other financial obligations are required to be made.

National Highway Safety Administration

A federal agency responsible for achieving the highest standards of safety on the nation's roads and highways.