Current assets at New Fashion Stores, Inc are $20 million, and current liabilities are $10 million. The company's current ratio is ________
A) 0.50
B) 10.00
C) 2.00
D) 20.00
E) 5.00
C
Explanation: C) The current ratio is a measurement used to determine the extent to which a company can meet its current financial obligations. Current ratio is calculated as Current Assets / Current Liabilities.
You might also like to view...
After an independent audit, an accountant certifies the financial statement by issuing a(n) ________.
A. opinion letter B. certificate of audit C. memorandum D. amicus brief
Given the following code, what is the value in B5?
Public Function EValue(Values As Range, Probability As Range)
Dim EV as Single
EV = 0
For t = 1 To Values.Count
EV = EV + Values(t) * Probability(t)
Next t
EValue = EV
End Function
a) $100
b) $200
c) $150
d) $0
e) $400
A ________ activity is one that is necessary to meet customer requirements
a. value-added b. backflush c. non-value-added d. just-in-time
Net income divided by net sales is the:
A. Profit margin. B. Total asset turnover. C. Current ratio. D. Return on total assets. E. Days' sales in inventory.