Determining the current ratio


Problem:

Cash is $15,000; prepaid expenses are $5,000; net income is $60,000; current liabilities are $50,000; accounts receivable are $15,000; and merchandise inventory is $10,000.

Required:

The current ratio is

Select one:

  • 0.60
  • 0.80
  • 0.90
  • 2.10

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Accounting Basics: Determining the current ratio
Reference No:- TGS0882360

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