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julsineya [31]
2 years ago
15

Assume that a business has $50000 of current assets and $40000 of current liabilities. What is the company’s current ratio?

Business
1 answer:
olganol [36]2 years ago
4 0

Answer:

The company's current ratio is 1.25.

Explanation:

The current ratio is calculated by dividing the current assets by the current liabilities:

current assets=$50000

current liabilities=$40000

current ratio=$50000/$40000

current ratio=1.25

According to this, the answer is that the company's current ratio is 1.25.

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When an organization prepares it's balance sheet,it ensures that the depreciation schedule is recorded for all it's assets ensuring that both the cost of the equipment and it's depreciation is documented accordingly. Accumulated depreciation reduces the value of the assets in the balance sheet when added.

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