A Company Has $110,000 in Current Assets; $600,000 in Total

question 18

Multiple Choice

A company has $110,000 in current assets; $600,000 in total assets; $80,000 in current liabilities, and $140,000 in total liabilities. Calculate the current ratio of the company. (Round your answer to two decimal places.)

• A) 1.38
• B) 1.82
• C) 1.73
• D) 0.79

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Definitions:

Callable Bonds

Bonds that can be redeemed by the issued before their maturity date at a predefined calling price.

Fiscal Year

A 12-month period that a company or government uses for accounting purposes and preparing financial statements, not necessarily matching the calendar year.

Interest Payable

Interest payable is the amount of interest expense that has accumulated but not yet been paid by the company within a given accounting period.

Unamortized Premium

The portion of a bond's premium that has not yet been gradually written off or expensed over the bond's life to date.