A Company Has Current Assets of $105,000 and Current Liabilities

question 87

Multiple Choice

A company has current assets of $105,000 and current liabilities of $35,000.A $6,000 sale on account was made.After this transaction,its current ratio will be: (Round your final answer to two decimal places. )

• A)0.33.
• B)2.83.
• C)3.00.
• D)3.17.

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Definitions:

Relative-price Variability

The fluctuation and differences in price levels of goods and services relative to each other over time.

Efficiently Allocate

The process of distributing resources in a manner that maximizes the effectiveness or utility of their use.

Monetary Neutrality

The economic theory that changes in the money supply only affect nominal variables and have no effect on real variables such as output or unemployment in the long run.

Fisher Effect

An economic theory proposing that the real interest rate is independent of monetary measures, specifically that the nominal interest rate adjusts to expected inflation.