Which of the Following Ratios Is Calculated by Dividing Current

question 97

Multiple Choice

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

• A)Return on equity ratio
• B)Current ratio
• C)Net profit margin ratio
• D)Fixed asset turnover ratio

Comprehend how exchange creates value and facilitates economic progress.

Identify the conditions under which individuals and nations gain from trade.

Understand the concept of the production possibilities curve (PPC) and its implications on resource use and efficiency.

Comprehend the law of comparative advantage and how it influences trade and specialization decisions.

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Definitions:

Liability to Third Parties

A legal obligation to compensate individuals not directly involved in a contract or agreement for any injuries or damages caused.

Right to Dissociate

The legal ability of a partner to leave a partnership under laws governing business partnerships, potentially triggering buyout provisions or dissolution of the partnership.

Dissociate

To separate or remove oneself from an association, relationship, or partnership.

Partnership

Two or more individuals engaging in a legal business structure, where management roles and profits are shared.