In 2011,P Co Reported a Current Ratio of 1

question 17

Multiple Choice

In 2011,P Co reported a current ratio of 1.47 and in 2012,0.55.In examining their statement of financial position for 2012,they disclosed current assets of $4,362 million and current liabilities of $7,914 million.In 2011,they had no short-term borrowings but they disclosed $3,921 million in short-term borrowings for 2012.What would P Co's current ratio have been in 2012 if they had not borrowed those funds?

• A)0.37
• B)0.98
• C)1.09
• D)It cannot be computed without knowing the amount of current liabilities in 2011 so we can compute the average current liabilities in the denominator.

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Definitions:

Sociohistorical System

The study of social phenomena and historical contexts as interconnected aspects influencing human behavior and societal change.

Macrosystem

The outermost layer in ecological systems theory, encompassing cultural values, laws, customs, and resources that influence an individual's development.

Chronosystem

In the ecological systems theory, the chronosystem represents the dimension of time, including life transitions and environmental events, influencing the individual's development.

Intimacy

The state of having a close, personal, and usually affectionate or loving relationship with someone.