If the Current Ratio Is 2

question 62

Multiple Choice

If the current ratio is 2.5 to 1,net income is $6,000,and current liabilities are $18,000,how much is working capital?

• A)$ 6,000
• B)$ 14,000
• C)$ 27,000
• D)$ 45,000

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Definitions:

Oral Stage

A stage of psychosexual development proposed by Freud, characterized by pleasure centers on the mouth.

Fixated

In psychoanalytic theory, a state in which a person remains attached to objects or experiences from a specific stage of development, preventing further psychological progress.

Repressed

Relating to thoughts, memories, or desires that are unconsciously held back from conscious awareness due to being perceived as socially unacceptable or threatening.

Spotlight Effect

The inclination to exaggerate the degree to which others observe and assess our looks, actions, and errors.