The following contains information from the records of the Becker Architecture Firm. Which of the following statements is an accurate interpretation of the current ratio of the Becker Architecture Firm? (Round your answer to two decimal places. )
A)The company has $1.03 of current assets for every $1.00 of liabilities.
B)The company has $3.00 of current assets for every $1.00 of current liabilities.
C)The company has $0.17 of current assets for every $1.00 of liabilities.
D)The company has $0.64 of current assets for every $1.00 of current liabilities.

Question

The following contains information from the records of the Becker Architecture Firm.  Which of the following statements is an accurate interpretation of the current ratio of the Becker Architecture Firm? (Round your answer to two decimal places. )
A)The company has $1.03 of current assets for every $1.00 of liabilities. 
B)The company has $3.00 of current assets for every $1.00 of current liabilities. 
C)The company has $0.17 of current assets for every $1.00 of liabilities. 
D)The company has $0.64 of current assets for every $1.00 of current liabilities.

Quizplus · Accepted Answer

B)Current ratio = Total current assets / Total current liabilities
Current ratio = $90,000 / $30,000 = 3.00

The Following Contains Information from the Records of the Becker