The Following Contains Information from the Records of the Wellborn

question 63

Multiple Choice

The following contains information from the records of the Wellborn Engineers and Architects.
Wellborn Engineers and Architects
Selected financial information
31 December,2016
$$\begin{array} { | l | l | } \hline \text { Current assets } & \$ 70,000 \\\hline \text { Current liabilities } & 35,000 \\\hline \text { Non-current assets } & 99,000 \\\hline \text { Non-current liabilities } & 62,000 \\\hline \text { Total revenues } & 53,000 \\\hline \text { Total expenses } & 37,000 \\\hline\end{array}$$
Which of the following statements is an accurate interpretation of the current ratio of Wellborn Engineers and Architects?

• A) The company has $2.00 of current assets for every $1.00 of current liabilities.
• B) The company has $0.57 of current assets for every $1.00 of current liabilities.
• C) The company has $2.13 of current assets for every $1.00 of liabilities.
• D) The company has $1.60 of current assets for every $1.00 of liabilities.

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Definitions:

Voidable

Describes a contract that may appear valid but can be legally declared void at the option of one of the parties due to certain defects.

Reasonable Manner

Acting with fairness, care, and prudence in a given set of circumstances, as would be expected from a similarly situated person.

Bank Accounts

Financial accounts maintained by individuals or businesses with a financial institution for the management of money, including savings and checking accounts.

Student Loans

Financial loans provided to students to help pay for educational expenses, typically to be repaid after completion of studies.