[The following information applies to the questions displayed below.]
Shown below are selected data from the balance sheet of Compros,a small electronics store (dollar amounts are in thousands):

-200 What is the current ratio?
A)5.0 to 1
B)1.5 to 1
C)0.7 to 1
D)0.8 to 1

Question

[The following information applies to the questions displayed below.]
Shown below are selected data from the balance sheet of Compros,a small electronics store (dollar amounts are in thousands):
 
-200 What is the current ratio?
A)5.0 to 1 
B)1.5 to 1 
C)0.7 to 1 
D)0.8 to 1

Quizplus · Accepted Answer

Current ratio = Current Assets / Current Liabilities
Current Assets = 200 + 300 = 500
Current Liabilities = 400
Current ratio = 500 / 400 = 1.25
Therefore, the current ratio is 1.5 to 1.

[The Following Information Applies to the Questions Displayed Below