Calculate the Current Ratio Using the Following Information: (Round Your

question 64

Multiple Choice

Calculate the current ratio using the following information: (Round your answer to two decimal places.) $$\begin{array} { l l } \text { Cash } & \$ 5,000 \\\text { Accounts Receivable } & 1,100 \\\text { Prepaid Rent } & 1,000 \\\text { Land } & 40,000 \\\text { Equipment } & 4,000 \\\text { Accumulated Depreciation } & 1,200 \\\text { Accounts Payable } & 3,000 \\\text { Salaries Payable } & 900 \\\text { Notes Payable-long term } & 9,000\end{array}$$

• A) 1.82
• B) 2.37
• C) 3.09
• D) 1.56

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Definitions:

Distribution Mean

The average of all values in a data set, calculated by summing the values and dividing by the number of observations, representing the center or location of the distribution.

Standard Deviation

An indicator of how much data points deviate from the central value, signifying the spread of the dataset.

Process Distribution

The statistical distribution that characterizes the outputs or results of a process, helping to understand its behavior and variation.

Assignable Variation

Variation in a process that is caused by specific, identifiable factors, as opposed to random or inherent variability.