Team Shirts had current assets of $2,500,long-term assets of $3,850,current liabilities of $1,450,long-term liabilities of $2,000,and shareholder's equity of $2,900.The current ratio (rounded)is ________.
A)0.72
B)1.84
C)4.38
D)1.72

Question

Quizplus · Accepted Answer

Current Ratio = Current Assets / Current Liabilities
= $2,500 / $1,450
= 1.724
Rounded to the nearest whole number, the current ratio is 1.72. Therefore, the best choice is D.

Team Shirts Had Current Assets of $2,500,long-Term Assets of $3,850,current