Question: 1. The current ratio is computed as a. Assets + Liabilities b. Assets + Current Liabilities C. Current Assets + Current Liabilities d. Current Assets

1. The current ratio is computed as a. Assets + Liabilities b. Assets + Current Liabilities C. Current Assets + Current Liabilities d. Current Assets - Current Liabilities b 2. Lilac Company reported the following current assets and current liabilities for the year ended December 31: Cash, $50,000 Accounts receivable, $40,000 Inventory, $25,000 Total assets, $150,000 Current liabilities, $49,000 Total liabilities, $99,000 Lilac's quick ratio (rounded to two decimal places) for the year ended December 31 is . a. 1.52 b. 2.35 c. 1.84 d. None of these choices are correct b

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