If a Company Has Current Assets of $15,000 and Current

question 44

True/False

If a company has current assets of $15,000 and current liabilities of $9,500, its current ratio is 1.6.
Current Ratio = Current Assets/Current Liabilities
Current Ratio = $15,000/$9,500 = 1.6

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Definitions:

Professional Negligence

The failure of a professional to perform their services with the skill and care that should be exercised by competent professionals in the same field, leading to harm.

Nonclients

Individuals or entities that have not entered into a professional service relationship with certain professionals, such as lawyers or accountants, and consequently, the professional does not owe them the same duty of care.

CPA Liable

Refers to situations where a Certified Public Accountant is held legally responsible for their actions or omissions in the course of their professional duties.

Audit Negligently

Performing an audit with a lack of care or in violation of the standards of the auditing profession, often leading to incorrect or misleading results.