Which of the Following Ratios Is Calculated by Dividing Liquid

question 19

Multiple Choice

Which of the following ratios is calculated by dividing liquid assets by current liabilities?

• A)Current ratio.
• B)Quick ratio.
• C)Turnover ratio.
• D)Working capital ratio.

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Definitions:

Punitive Damages

Monetary compensation awarded in lawsuits over and above actual damages, intended to punish the defendant for particularly egregious conduct.

Policy Limits

The highest sum an insurer will disburse for a claim covered by the policy.

Subrogation Clause

A clause in an insurance policy that allows the insurer to assume the legal rights of the insured to seek recovery from third parties responsible for causing an insured loss.

Faulty Stove

A stove that has defects or malfunctions, potentially causing inconvenience or danger to users.