Asked by
Ashish Routray
on Oct 16, 2024
Verified
Trekker Bikes' current assets are $300 million and its current liabilities are $125 million.Its current ratio is 0.417.
Current Assets
Assets that a company expects to convert into cash, sell, or consume within one year or its operating cycle, whichever is longer.
Current Liabilities
Short-term financial obligations that are due within one year or within the entity's operating cycle.
Current Ratio
A liquidity ratio that measures a company’s ability to pay short-term obligations with its current assets.
- Acquire insight into the current ratio and its critical function in appraising a company’s liquidity position.
Verified Answer
SS
Learning Objectives
- Acquire insight into the current ratio and its critical function in appraising a company’s liquidity position.