The Following Contains Information from the Records of Bourne Engineers

question 126

Multiple Choice

The following contains information from the records of Bourne Engineers and Architects. $$\begin{array} { c } \text { Bourne Engineers and Architects } \\\text { Selected Finarncial Information } \\\text { Decermber 31, 2019 }\\\begin{array} {| l | r| } \hline \text { Current Assets } & \$ 70,000 \\\hline \text { Current Liabilities } & 35,000 \\\hline \text { Long-Term Assets } & 97,000\\\hline \text { Long-Term Liabilities } & 63,000\\\hline \text { Total Revenues } & 55,000 \\\hline \text { Total Expenses } & 36,000\\\hline\end{array}\end{array}$$ Calculate the current ratio.(Round your answer to two decimal places.)

• A) 1.54
• B) 2.08
• C) 0.56
• D) 2.00

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Definitions:

Average Variable Costs

This represents the total variable costs (costs that vary with the production level) divided by the quantity of output produced.

Total Costs

The sum of all costs incurred by a business in producing a particular quantity of a good or service, including both fixed and variable costs.

Economic Cost

The total cost of choosing one action over another, including both explicit costs and opportunity costs.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision.