If two companies have the same current ratio, their ability to pay short-term debt is the same

a. True
b. False

Indicate whether the statement is true or false


False

Business

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Answer the following statement true (T) or false (F)

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Answer the following statement true (T) or false (F)

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Olivia Co owns 5,600 of the 14,000 outstanding shares of Hobbitt Corp common stock and exercises significant influence over the company. During 2011, Hobbitt earns $$90,000 and pays cash dividends of $25,000 If the beginning balance in the investment account was $190,000, the balance at December 31, 2011 should be:

a. $192,000 b. $172,000 c. $180,000 d. $216,000

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