Company a Has Current Assets of 75,000 and Current Liabilities

question 98

Multiple Choice

Company A has current assets of 75,000 and current liabilities of $40,000. The company decides to issues stock and receives cash of $70,000. After this transaction, the company's current ratio will be:

• A) 0.68.
• B) 1.88.
• C) 3.62.
• D) 4.36.

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Definitions:

Legislation

Laws considered collectively, established by governing bodies to regulate, authorize, sanction, grant, declare, or restrict.

Federal Bureaucracy

The collection of government agencies and institutions that implement federal laws, policies, and programs.

Appropriations

Funding that has been set aside by formal legislative action for specific uses.

Authority

The right or power to give orders, make decisions, and enforce obedience, often in a specific context such as government, law enforcement, or organizational hierarchy.