Current Assets Divided by Current Liabilities Is The

question 142

Multiple Choice

Current assets divided by current liabilities is the:

• A) Current ratio.
• B) Quick ratio.
• C) Debt ratio.
• D) Liquidity ratio.
• E) Solvency ratio.

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Definitions:

Discounted Note

A promissory note that is sold or issued for less than its face value and upon maturity pays out its full face value, effectively generating interest for the holder.

Nonsufficient Funds Checks

Nonsufficient funds checks are checks that cannot be processed because the check writer's account does not have enough money to cover the amount.

Bank Reconciliation

The process of matching the balances in an entity's accounting records for a cash account to the corresponding information on a bank statement.