The Current Ratio

question 131

Multiple Choice

The current ratio

• A) Is current assets divided by current liabilities
• B) Helps to assess a company's ability to pay its debts in the near future
• C) Suggests there may be problems in a business if it is less than 1
• D) Is a measure of a company's liquidity
• E) All of these

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Definitions:

Actus Reus

The physical act of committing a crime, as opposed to the mental state or intent behind the act, which is known as mens rea.

Premeditation

The act of planning or thinking about an action, especially a harmful one, beforehand.

Mental Disorders

Health conditions characterized by alterations in thinking, mood, or behavior associated with distress or impaired functioning.

Prevalence Rates

Refers to the total number of cases of a disease or health-related issue within a population at a specific point in time.