66.Generally speaking, which appears to be a desirable current ratio?
A. 20 to 1.
B. 1 to 20.
C. 2 to 1.
D. 1 to 2.
67.If a company has a current ratio of 2 to 1, and purchases inventory on credit, what will this do to its current ratio?
A. Increase the current ratio.
B. Decrease the current ratio.
C. Does not change the current ratio.
D. Cannot be determined.
68.When comparing the current ratio to the quick ratio:
A. The current ratio will be greater or equal.
B. The quick ratio will always be greater.
C. The quick ratio is sometimes greater and sometimes less than the current ratio.
D. They always will be the same.
69.If a retail store has a current ratio of 2.5 and current assets of $195,000, the amount of working capital is:
A. $78,000.
B. $380,000.
C. $330,000.
D. $117,000.
70.The Plaza Company has working capital of $540,000 and a current ratio of 3 to 1. The amount of current assets is:
A. $405,000.
B. $540,000.
C. $810,000.
D. $270,000.
71.Refer to the information above. What is the quick ratio?
A. 1.5 to 1.
B. .7 to 1.
C. .45 to 1.
D. .8 to 1.
72.Refer to the information above. What is the current ratio?
A. 5.0 to 1.
B. 1.5 to 1.
C. .7 to 1.
D. .8 to 1.
73.Refer to the information above. What is the amount of working capital?
A. $225,000.
B. $300,000.
C. $150,000.
D. $450,000.
74.Refer to the information above. What is Compros' debt ratio?
A. 75%.
B. 25%.
C. 60%.
D. 33%.
75.Refer to the information above. What is the quick ratio?
A. 5%.
B. 1.5 to 1.
C. 20%.
D. 1.09 to 1.