Clean Sweep had current assets of $650 and long-term assets of $1,350.It had current liabilities of $500 and a note payable of $600 due in three years.Its current ratio (rounded)was ________.
A)1.30
B)1.82
C)4.00
D)0.59

Question

Quizplus · Accepted Answer

To find the current ratio, we divide current assets by current liabilities.

Current Ratio = Current assets / Current liabilities

Current Ratio = $650 / $500

Current Ratio = 1.3

Therefore, the answer is A) 1.30.

Clean Sweep Had Current Assets of $650 and Long-Term Assets