A Company Has Current Assets of $105,000 and Current Liabilities

question 27

Multiple Choice

A company has current assets of $105,000 and current liabilities of $35,000.It made a $5,000 sale on account.After this transaction,its current ratio will be:

• A)0.33.
• B)1.14.
• C)3.00.
• D)3.14.

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Definitions:

Reasonably Diligent Holder

A term used in commercial law referring to individuals holding negotiable instruments who take appropriate actions to secure their interests.

Maker

in the context of a negotiable instrument, is the party who created and signed the instrument, promising to pay a certain sum to another.

Primary Party

A principal party involved directly in a legal case or transaction.

Presentment For Payment

The act of formally presenting a financial instrument, such as a check or draft, for payment to the party responsible.