Question: What does a current ratio of 1 . 2 mean? Multiple choice question. The firm has $ 1 . 2 0 in current assets for

What does a current ratio of 1.2 mean?
Multiple choice question.
The firm has $1.20 in current assets for every $1 in fixed assets.
The firm has $1.20 in current liabilities for every $1 in long-term debt.
The firm has $1.20 in current assets for every $1 in current liabilities.
The firm has $1.20 in current liabilities for every $1 in current assets.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

Tax Form/Return Preparation Problems C:3-66 Melodic Musical Sales, Inc. is located at 5500 Fourth Avenue, City, ST 98765. The corporation uses the calendar year and accrual basis for both book and...

Q:

What does a times interest earned ratio of 1 0 times indicate? Multiple choice question. The firm can cover the fixed charges 1 0 times. Income before interest and taxes covers the interest...

Q:

What does a current ratio of 2.5 times represent. Multiple choice question. For every $1 in liabilities the company has $2.50 in total assets. For every $1 in assets the company has $2.50 in...

Q:

What does a fixed asset turnover ratio of 4 times represent? Multiple choice question. The company purchased $ 4 in fixed assets for $ 1 they made in sales. The company held 4 times as many fixed...

Q:

Cash and other assets that are reasonably expected to be converted to cash or consumed within 1 year or the current operating cycle are classified as Multiple choice question. fixed assets....

Q:

What does a debt - to - equity ratio of 0 . 8 mean? Multiple choice question. A debt - to - equity ratio of 0 . 8 means the firm has 8 0 percent more debt than it does equity. A debt - to - equity...

Q:

What does it mean if a company's capital intensity ratio is 2 . 4 ? Multiple choice question. The firm needs $ 2 . 4 0 in equity to generate $ 1 in sales. The firm requires $ 2 . 4 0 in assets to...

Q:

Given the following information for questions 1 6: Gill and Zaahir are in the business of supplying and installing solar panels in the form of a partnership trading as Solar Installations. Gill and...

Q:

What does a total asset turnover ratio of 1 . 5 times represent? Multiple choice question. The company generated 5 0 cents in sales for every $ 1 in total assets. The company generated $ 1 . 5 0 in...

Q:

What does a total asset turnover ratio of 1.5 times represent? Multiple choice question. The company generated 50 cents in sales for every $1 in total assets. The company generated $1 in sales for...

Q:

Comparative financial statements for Sandhill and Monty Ltd. are shown below. SANDHILL AND MONTY LTD. Income Statement Year Ended December 31 2021 Net sales $870,000 Cost of goods sold 595.000 Gross...

Q:

Indicate whether each of the following items is an adjustment to the balance per books (BK) or to the balance per bank statement (BS) on a reconciliation that adjusts the bank balance and the bank...

Q:

Beauty Products Company is in the process of adopting the JIT operating environment for its lotion-making operations. Indicate which of the following overhead costs are non-value-adding costs (NVA)...

Q:

you own Bank of America preferred stock which pays an annual dividend of $ 1 2 per share. what is the price of the stock

Q:

due tonight help 1.Explain (don't just list) the reasons that women bear the greatest burden of poverty. \f\f\f

Q:

5. How would you expect the Economic Stimulus Act of 2008 to affect the actual budget (as a percentage of GDP) and the standardized budget? The main feature of the act was a one-time tax rebate to...

Q:

6. Briefly state and evaluate the problem of time lags in enacting and applying fiscal policy. How might politics complicate fiscal policy? How might expectations of a near-term policy reversal...

Q:

4. Define the standardized budget, explain its significance, and state why it may differ from the actual budget. Suppose the full-employment, noninflationary level of real output is GDP 3 (not GDP 2...