Which of the Following Ratios Is Calculated by Dividing Current

question 146

Multiple Choice

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

• A)Quick ratio
• B)Solvency ratio
• C)Debt ratio
• D)Current ratio

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Definitions:

Student Loans

Financial loans provided to students to help pay for educational expenses, typically to be repaid after completion of studies.

Liable

The state of being legally responsible for something, particularly in the context of obligations or debts.

Void

A term describing a contract or agreement that lacks legal validity and enforceability from the outset.

Mentally Impaired

Refers to individuals experiencing a decrease in cognitive, emotional or behavioral functioning, which impacts their ability to participate in daily activities.