At the Beginning of the Year, Megaron Company's Balance Sheet

question 124

Multiple Choice

At the beginning of the year, Megaron Company's balance sheet showed current assets of $16,000 and current liabilities of $10,000. During the current year, Megaron issued common stock for $5,000 for cash and purchased $3,000 of inventory on account. After these transactions were recorded, Megaron's current ratio was:

• A) 1.17.
• B) 1.60.
• C) 1.85.
• D) 2.10.

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Definitions:

Everyday Intuitions

The unconscious, quick judgments and decisions that people make daily without deliberate analytical thought.

Personality Consistency

The degree to which an individual's personality traits remain stable over time and across different situations.

Openness

In psychology, one of the Big Five personality traits, characterized by appreciation for art, emotion, adventure, unusual ideas, and curiosity.

Neuroticism

A personality trait characterized by anxiety, fear, moodiness, worry, envy, frustration, jealousy, and loneliness.