If a company's current ratio is 1.5 and the current liabilities are $150,000, then the current assets are
A)$300,000
B)$225,000
C)$100,000
D)$75,000

Name: If a company's current ratio is 1.5 and the current liabilities are $150,000, then the current assets are A)$300,000 B)$225,000 C)$100,000 D)$75,000
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Question

Quizplus · Accepted Answer

Current Ratio = Current Assets / Current Liabilities
1.5 = Current Assets / $150,000
Current Assets = 1.5 x $150,000
Current Assets = $225,000

If a Company's Current Ratio Is 1