In the Work Sheet of Parker Company, the Current Assets

question 92

Multiple Choice

In the work sheet of Parker Company, the current assets amount to $80,000, property and equipment is worth $150,000, current liabilities are $74,000, and long-term liabilities are $125,000. Which of the following is the current ratio of Parker Company? (Round to two decimal places.)

• A) 1.08
• B) 1.16
• C) 0.95
• D) 0.85
• E) 1.21

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Definitions:

Premium

An amount paid in addition to the standard or nominal cost, often associated with insurance, bonds, or the difference above a product's nominal value.

Spot Rate

The current market price at which a particular asset, such as currency, commodity, or security can be bought or sold for immediate delivery.

Direct Quote

A currency exchange rate quoted as the domestic currency per unit of the foreign currency.

Exchange Rate Risk

The potential for investors or companies to experience financial loss due to fluctuations in the exchange rate between two currencies.