________ analyze the business situation and identify the need for information and information services to meet the problems or opportunities of the business

The failure to record a purchase of merchandise on account even though the goods are properly included in the physical inventory results in

a. an overstatement of assets and net income. b. an understatement of assets and net income. c. an understatement of cost of goods sold and liabilities and an overstatement of assets. d. an understatement of liabilities and an overstatement of owners' equity.

A company has $120,000 in current assets; $600,000 in total assets; $90,000 in current liabilities, and $140,000 in total liabilities. Calculate the current ratio of the company. (Round your answer to two decimals.)

A) 1.33 B) 1.71 C) 1.75 D) 0.86