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A large manufacturing company has current assets of approximately $9,400,000 and current liabilities of about $4,900,000.
Which of the following statements is true about the current ratio?
Suggested Answer: B
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it is somewhat below the standard minimum. The standard minimum current ratio for a manufacturing company is 2 to 1. The current ratio for this company is 1.92 (9,400,000 divided by 4,900,000).
11 comments · newest first
MA
Mabelle
11 months ago
Wait, are we sure those numbers are accurate?
BE
Benton
12 months ago
Not sure, but it seems pretty healthy to me.
GE
Gerry
12 months ago
I think that's actually above the standard minimum.
KR
Krystina
12 months ago
That gives a current ratio of about 1.92!
BA
Barb
1 year ago
Current assets are $9.4M and liabilities are $4.9M.
ME
Merri
1 year ago
I feel like this current ratio is probably okay, but I can't recall if "somewhat above" means it's safe or just acceptable.
CO
Coleen
1 year ago
I practiced a similar question where the current ratio was below 1, and I think that was considered risky.
AL
Alverta
1 year ago
I think the standard minimum for a current ratio is around 1.0, so with those numbers, it might be just above that.
GL
Glenn
1 year ago
I remember the current ratio is calculated by dividing current assets by current liabilities, but I'm not sure what the standard minimum is.
KA
Kami
1 year ago
Okay, let's see here. I think the key is to make sure the reports are accessible within the model-driven app. Sharing and adding them to the site map seem like good options to explore.
IZ
Izetta
1 year ago
Okay, I think I know the answer to this. Let me double-check my understanding before selecting an option.