The Following Contains Information from the Records of the Becker

question 74

Multiple Choice

The following contains information from the records of the Becker Architecture Firm. $\begin{array}{c}\text { Becker Architecture Firm}\\\text { Selected Financial Information}\\ \text { December 31,2019}\\\begin{array}{|l|r|}\hline \text { Current Assets } & \$ 90,000 \\\hline \text { Current Liabilities } & 30,000 \\\hline \text { Long-Term Assets } & 99,000 \\\hline \text { Long-Term Liabilities } & 60,000 \\\hline \text { Total Revenues } & 55,000 \\\hline \text { Total Expenses } & 37,000\\\hline\end{array}\end{array}$
Which of the following statements is an accurate interpretation of the current ratio of the Becker Architecture Firm? (Round your answer to two decimal places.)

• A) The company has $2.53 of current assets for every $1.00 of liabilities.
• B) The company has $3.00 of current assets for every $1.00 of current liabilities.
• C) The company has $1.65 of current assets for every $1.00 of liabilities.
• D) The company has $0.62 of current assets for every $1.00 of current liabilities.

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Definitions:

Normal

Refers to what is considered usual, typical, or standard within a specific context or by societal norms.

Statistical Probability

The likelihood of an event occurring, measured on a scale from 0 to 1, where 0 means the event cannot happen and 1 means it will certainly happen.

Clinically Significant

A degree of significance in medical findings or outcomes that indicates an important change, especially in the diagnosis or treatment of a condition.

Socioeconomic Group

A categorization of people according to their economic and social position, often based on income, education, and occupation.