If Current Assets are $90,000, Property and Equipment is $120,000, Current Liabilities are $24,000, and Long-Term Liabilities are $106,000, the current ratio is
A)3.75 to 1.
B)1.13 to 1.
C)0.85 to 1.
D)5 to 1.
E)8.75 to 1.

Question

Quizplus · Accepted Answer

Current Ratio = Current assets / Current liabilities
Current Ratio = $90,000 / $24,000
Current Ratio = 3.75 to 1.

Therefore, the current ratio is 3.75 to 1. Option A is the correct answer.

If Current Assets Are $90,000, Property and Equipment Is $120,000