Smith Company has the following account balances: Calculate Smith Company's current ratio.
A)8.0:1
B)7.6:1
C)2.2:
D)1.1:

Question

Smith Company has the following account balances:  Calculate Smith Company's current ratio.
A)8.0:1 
B)7.6:1 
C)2.2: 
D)1.1:

Quizplus · Accepted Answer

To calculate the current ratio, we need to divide the total current assets by the total current liabilities. However, the account balances given in the question do not specify which accounts are current assets and which accounts are current liabilities. Therefore, we cannot compute the current ratio accurately with the given information.

Smith Company Has the Following Account Balances: Calculate Smith