The current ratio is calculated by
A. subtracting current liabilities from current assets.
B. dividing total assets by total liabilities.
C. adding current assets to current liabilities.
D. dividing current assets by current liabilities.
Answer: D
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The following information was taken from the financial statements of Ashley's Linens: Total current assets $ 53,000 Property, plant, and equipment 6,000 Current liabilities 21,000 Long-term liabilities 4,000 Owner's equity 34,000 Beginning inventory 31,000 Ending inventory 33,000 Cost of goods sold 152,000 Net income 42,000 The working capital of Ashley's Linens is
a. $32,000. b. $33,000. c. $34,000. d. $38,000.
At the beginning of a partnership, Dharma invests office furniture valued at $14,000, computer equipment valued at $3,000 on which $2,000 is still owed on account, and $10,000 in cash. The amount of Dharma's capital account would be
a. $10,000; b. $15,000; c. $17,000; d. $25,000; e. $27,000
Government markets consist of government agencies that buy goods and services ________
A) to produce public services B) to resell at a profit C) for further processing D) for personal consumption E) that are generally of poor quality
When you are interpreting financial ratios, it is useful to compare a company's ratios to some form of standard
Indicate whether the statement is true or false