Use the Information in the Adjusted Trial Balance Presented Below

question 169

Multiple Choice

Use the information in the adjusted trial balance presented below to calculate current assets for Jones Company:

• A) $21,200.
• B) $45,600.
• C) $24,400.
• D) $95,600.
• E) $41,200.

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Definitions:

Current Ratio

A measure of a company’s capability to settle short-term debts using its current assets.

Acid-Test Ratio

A stringent indicator of a company's short-term liquidity, calculated by dividing liquid assets by current liabilities, excluding inventory from assets.

Financial Stability

The condition of having strong financial health, characterized by a solid balance sheet, manageable debt, and the capability to meet short and long-term obligations.

Operating Efficiency

A measure of how well a company utilizes its resources to generate profit without unnecessary waste.