Finra Exam Series-7 Topic 3 Question 6 Discussion

Actual exam question for Finra's Series-7 exam

Question #: 6
Topic #: 3

A large manufacturing company has current assets of approximately $9,400,000 and current liabilities of about $4,900,000.

Which of the following statements is true about the current ratio?

Ait is substantially below the standard minimum

Bit is somewhat below the standard minimum

Cit is about the standard minimum

Dit is somewhat above the standard minimum

Show Suggested Answer

Suggested Answer: B

it is somewhat below the standard minimum. The standard minimum current ratio for a manufacturing company is 2 to 1. The current ratio for this company is 1.92 (9,400,000 divided by 4,900,000).

by Claribel at May 05, 2022, 12:46 AM

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