Maids-R-Us had current assets of $1,160 and total assets of $2,640.It had $650 in accounts payable and a note payable for $1,500 due in two years.The current ratio (rounded)was ________.
A)1.23
B)1.78
C)0.54
D)0.81

Question

Quizplus · Accepted Answer

Current Ratio = Current Assets/Current Liabilities
Current Assets = $1,160
Current Liabilities = Accounts Payable = $650
Current Ratio = $1,160/$650 = 1.78 (rounded)

Maids-R-Us Had Current Assets of $1,160 and Total Assets of $2,640.It