Please Refer to the Following Data Using the "Rule of Thumb" Guidelines,what Conclusion Could You Draw

Multiple Choice

Please refer to the following data: $$\begin{array} { | l | r | r | } \hline & { \text { Debit } } & { \text { Credit } } \\\hline \text { Cash } & \$ 16,000 & \\\hline \text { Accounts receivable } & 2,800 & \\\hline \text { Prepaid insurance } & 800 & \\\hline \text { Land } & 40,000 & \\\hline \text { Building } & 50,000 & \\\hline \text { Accumulated depreciation } & & \$ 32,000 \\\hline \text { Accounts payable } & & 2,200 \\\hline \text { Wages payable } & & 4,000 \\\hline \text { Notes payable-short term } & & 2,300 \\\hline\end{array}$$ Using the "rule of thumb" guidelines,what conclusion could you draw?

A) This business faces a liquidity problem, and may have trouble paying off its current liabilities with its current assets.
B) This business has does not have enough total assets to meet its total obligations.
C) This business has a very good current ratio, but the debt ratio indicates long-term liquidity problems.
D) This business should have no difficulties paying off its liabilities.