My Learning Cart
?
Categories
Account

If a company has current assets of $150,000 and current liabilities of $75,000,

₹0.0
Login to Download
  • 📥 Instant PDF Download
  • ♾ Lifetime Access
  • 🛡 Secure & Original Content

What’s inside this PDF?

Question: If a company has current assets of $150,000 and current liabilities of $75,000, what is its current ratio?

Options:

  1. 2:1
  2. 1:2
  3. 1:1
  4. 3:1

Correct Answer: 2:1

Solution: 

Current Ratio = Current Assets / Current Liabilities = 150,000 / 75,000 = 2:1.

If a company has current assets of $150,000 and current liabilities of $75,000,

Practice Questions

Q1
If a company has current assets of $150,000 and current liabilities of $75,000, what is its current ratio?
  1. 2:1
  2. 1:2
  3. 1:1
  4. 3:1

Questions & Step-by-Step Solutions

If a company has current assets of $150,000 and current liabilities of $75,000, what is its current ratio?
  • Step 1: Identify the current assets of the company, which is $150,000.
  • Step 2: Identify the current liabilities of the company, which is $75,000.
  • Step 3: Use the formula for current ratio, which is Current Assets divided by Current Liabilities.
  • Step 4: Plug in the numbers: Current Ratio = 150,000 / 75,000.
  • Step 5: Calculate the result: 150,000 divided by 75,000 equals 2.
  • Step 6: Write the current ratio in the format of 'X:Y', which is 2:1.
  • Current Ratio – A financial metric that measures a company's ability to pay short-term obligations with its short-term assets.
Soulshift Feedback ×

On a scale of 0–10, how likely are you to recommend The Soulshift Academy?

Not likely Very likely
Home Practice Performance eBooks