The following contains information from the records of the Wellborn Engineers and Architects. Which of the following statements is an accurate interpretation of the current ratio of Wellborn Engineers and Architects?
A)The company has $2.32 of current assets for every $1.00 of liabilities.
B)The company has $1.68 of current assets for every $1.00 of current liabilities.
C)The company has $1.58 of current assets for every $1.00 of liabilities.
D)The company has $0.59 of current assets for every $1.00 of current liabilities.

Question

The following contains information from the records of the Wellborn Engineers and Architects.   Which of the following statements is an accurate interpretation of the current ratio of Wellborn Engineers and Architects?
A)The company has $2.32 of current assets for every $1.00 of liabilities. 
B)The company has $1.68 of current assets for every $1.00 of current liabilities. 
C)The company has $1.58 of current assets for every $1.00 of liabilities. 
D)The company has $0.59 of current assets for every $1.00 of current liabilities.

Quizplus · Accepted Answer

The current ratio is calculated by dividing current assets by current liabilities. Based on the information provided, the company has current assets of $168,089 and current liabilities of $100,112. Therefore, the current ratio is 1.68 ($168,089/$100,112), indicating that the company has $1.68 of current assets for every $1.00 of current liabilities.

The Following Contains Information from the Records of the Wellborn