The Following Contains Information from the Records of the Balfor

question 6

Multiple Choice

The following contains information from the records of the Balfor Architecture Firm $\begin{array}{c}\text {Balfor Architecture Firm}\\\text {Selected Financial Informatior}\\\text {December 31, 2017}\\\begin{array}{|l|r|}\hline\text { Current Assets } & \$ 80,000 \\\hline \text { Current Liabilities } & 42,000 \\\hline \text { Long-Term Assets } & 95,000 \\\hline \text { Long-Term Liabilities } & 60,000 \\\hline \text { Total Revenues } & 50,000 \\\hline \text { Total Expenses } & 30,000\\\hline\end{array}\end{array}$ Which of the following statements is an accurate interpretation of the current ratio of Balfor Architecture Firm? (Round your answer to two decimals. )

• A)The company has $2.42 of current assets for every $1.00 of liabilities.
• B)The company has $1.90 of current assets for every $1.00 of current liabilities.
• C)The company has $1.58 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.

---

Definitions:

Marginal Product

The additional output resulting from using one more unit of a particular input while holding all other inputs constant.

Accounting Profits

The difference between total revenue and explicit costs, representing the net income shown on a company's financial statements.

Implicit Costs

The opportunity costs associated with a company's use of resources that it owns, representing the potential income lost by not using those resources in an alternative way.