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:

Central Government

The national government of a federated state, possessing ultimate governmental authority over the entire country.

Government Program

An initiative funded and operated by a government body aimed at achieving a specific social, economic, or political purpose.

National Government

The government that oversees the entire nation, as opposed to local or regional governments.

Dual Federalism

A political system where the responsibilities and powers are clearly divided between the national and state governments.