The Following Contains Information from the Records of the Becker

question 145

Multiple Choice

The following contains information from the records of the Becker Architecture Firm. $\begin{array}{c}\text {Becker Architecture Firm}\\\text { Selected Financial Information}\\\text {December 31,2019}\\\begin{array}{|l|r|}\hline \text { Current Assets } & \$ 90,000 \\\hline \text { Current Liabilities } & 30,000 \\\hline \text { Long-Term Assets } & 11,000 \\\hline \text { Long-Term Liabilities } & 65,000 \\\hline \text { Total Revenues } & 50,000 \\\hline \text { Total Expenses } & 34,000\\\hline \end{array}\end{array}$ Which of the following statements is an accurate interpretation of the current ratio of the Becker Architecture Firm? (Round your answer to two decimal places.)

• A) The company has $1.03 of current assets for every $1.00 of liabilities.
• B) The company has $3.00 of current assets for every $1.00 of current liabilities.
• C) The company has $0.17 of current assets for every $1.00 of liabilities.
• D) The company has $0.64 of current assets for every $1.00 of current liabilities.

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Definitions:

Igneous Rocks

Rocks formed by the cooling and solidification of magma or lava, characterized by a crystalline texture.

Sand Dunes

Hills of sand formed by the wind, often found in deserts and along beaches.

Dry Climates

Climatic regions characterized by low precipitation, leading to arid or semi-arid conditions.

Kilometers

A unit of length in the metric system, equal to 1,000 meters or approximately 0.62 miles, used to measure distance.