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:

Natural Rate of Unemployment

The level of unemployment consistent with a stable rate of inflation, also seen as the equilibrium between the labor force and the number of available jobs.

Actual Inflation

The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling, as measured over a specific period.

Expected Rate of Inflation

The expected pace at which the overall price level of goods and services will increase over time.

Federal Reserve

The central banking system of the United States, responsible for regulating the monetary policy to stabilize the economy.