If a company has current assets of $15,000 and current liabilities of $9,500, its current ratio is 1.6

Question

Quizplus · Accepted Answer

Current ratio is calculated by dividing current assets by current liabilities.

Current ratio = Current assets / Current liabilities

Given, 
Current assets = $15,000 
Current liabilities = $9,500

Current ratio = $15,000 / $9,500 = 1.58 (approx)

Since the question asks for the answer rounded to one decimal place, the answer is 1.6. Therefore, the statement is true.

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