The Following Information Is Taken from the Balance Sheet of Alberta

question 102

Multiple Choice

The following information is taken from the balance sheet of Alberta Company: Alberta Company's current ratio is:

• A)2.5 to 1
• B)1.6 to 1
• C)1.76 to 1
• D).66 to 1

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Definitions:

Tax Adjustments

Modifications made to financial statements to account for differences between accounting practices and tax regulations.

Bonus Shares

Shares issued to current shareholders at no cost, based on the number of shares that a shareholder owns.

Cash Dividend

A payment of profits by a company to its shareholders, made in cash, as opposed to stock or other forms of payment.

Changes in Equity

Movements in shareholders' equity over a period due to profits, losses, dividends, and transactions with owners in their capacity as owners.