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Finra Series-7 Exam - Topic 3 Question 6 Discussion

Actual exam question for Finra's Series-7 exam
Question #: 6
Topic #: 3
[All Series-7 Questions]

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?

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Suggested Answer: B

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).


by Claribel at May 05, 2022, 12:46 AM

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Mabelle
5 months ago
Wait, are we sure those numbers are accurate?
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Benton
5 months ago
Not sure, but it seems pretty healthy to me.
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Gerry
5 months ago
I think that's actually above the standard minimum.
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Krystina
5 months ago
That gives a current ratio of about 1.92!
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Barb
5 months ago
Current assets are $9.4M and liabilities are $4.9M.
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Merri
6 months 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.
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Coleen
6 months ago
I practiced a similar question where the current ratio was below 1, and I think that was considered risky.
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Alverta
6 months ago
I think the standard minimum for a current ratio is around 1.0, so with those numbers, it might be just above that.
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Glenn
6 months 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.
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Kami
6 months 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.
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Izetta
6 months ago
Okay, I think I know the answer to this. Let me double-check my understanding before selecting an option.
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