[The following information applies to the questions displayed below.]
Shown below are selected data from the balance sheet of Bill's Auto Parts,a retail store (dollar amounts are in thousands):

-200 What is the current ratio?
A)1.2 to 1
B)Less than 2 to 1,but not 1.2 to 1
C)2.6 to 1
D)More than 2 to 1,but not 2.6 to 1

Question

[The following information applies to the questions displayed below.]
Shown below are selected data from the balance sheet of Bill's Auto Parts,a retail store (dollar amounts are in thousands):
 
-200 What is the current ratio?
A)1.2 to 1 
B)Less than 2 to 1,but not 1.2 to 1 
C)2.6 to 1 
D)More than 2 to 1,but not 2.6 to 1

Quizplus · Accepted Answer

Current ratio is current assets divided by current liabilities. 
Current assets = $827,000
Current liabilities = $320,000

Current ratio = $827,000 ÷ $320,000 = 2.6 to 1

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