Assume a Company Has a Current Ratio of 2

question 198

Multiple Choice

Assume a company has a current ratio of 2.5,and has working capital equal to $750,000.If the company's total current liabilities are equal to $500,000,its total current assets are:

• A) $1,270,500
• B) $1,250,000
• C) $1,750,000
• D) $1,000,000

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Definitions:

Earned-Income Strategies

Business activities initiated by nonprofit organizations that directly generate revenue as a result of the goods or services they offer, contributing to their financial sustainability.

Earned Income

Revenue generated from goods or services offered by an organization.

Partnerships

Cooperative relationships between people or groups, often formalized by agreements, working toward common goals or business ventures.

Intelligent Failure

The concept of learning valuable lessons from the experiments and endeavors that do not succeed, thereby contributing to future success through improved knowledge and understanding.