A Company Has Current Assets of $80,000,long-Term Assets of $150,000,current

question 189

Multiple Choice

A company has current assets of $80,000,long-term assets of $150,000,current liabilities of $40,000,and long-term liabilities of $40,000.The current ratio is:

• A).80.
• B)1.33.
• C)2.00.
• D)2.33.

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Definitions:

Default Rule

A legal principle that applies in the absence of an agreement to the contrary between the parties involved in a contract or transaction.

Order Paper

A document listing the business or orders of the day for parliamentary bodies, including scheduled discussions, questions, and motions.

Drawer

In the context of negotiable instruments, this term refers to the party that creates or writes a check or a draft, instructing the drawee (usually a bank) to pay the specified amount to a third party (the payee).

Drawee

The party directed by a drafter (such as in the case of a cheque) to pay a certain amount of money to a third party.