Based on the Following Information, Determine the Current Ratio, Assuming

question 165

Multiple Choice

Based on the following information, determine the current ratio, assuming all accounts have a normal balance?
$\begin{array} { l r l r } \text { Cash } & \$ 6,754 & \text { Dividends } & \$ 2,000 \\\text { Accounts receivable } & 13,733 & \text { Consulting fees earned } & 13,718 \\\text { Office supplies } & 2,625 & \text { Rent expense } & 3,673 \\\text { Land } & 37,153 & \text { Salaries expense } & 6,642 \\\text { Office equipment } & 14,535 & \text { Telephone expense } & 560 \\\text { Accounts payable } & 6,463 & \text { Miscellaneous expense } & 280 \\\text { Common stock } & 54,490 & \text { Retained Earnings } & ?\end{array}$

• A) 1.23
• B) 3.58
• C) 11.57
• D) 1.23.
• E) 1.57.

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Definitions:

Bond Issuer

An entity, such as a corporation or government, that raises funds by issuing bonds, obligating itself to pay interest to bondholders and repay the principal at maturity.

Obligations

Legal or financial duties or commitments that an entity is required to fulfill.

Collateral Agreements

Contracts that pledge an asset as security for the repayment of a loan, providing a lender a form of protection against the borrower's default.

Unsecured Debt

Debt that is not backed by any collateral, meaning if the borrower defaults, the lender has no secured asset to claim for repayment.