Which of the Following Depicts the Current Ratio

question 25

Multiple Choice

Which of the following depicts the current ratio?

• A)Current assets - inventory) ÷ current liabilities
• B)Currents assets ÷ total assets
• C)Current assets - inventory) ÷ total assets
• D)Current assets ÷ current liabilities

---

Definitions:

Annual Rate of Inflation

The percentage increase in the cost of goods and services over a one-year period.

Equivalent Annual Rate

The interest rate that is annualized using compounding over a given period, making it comparable across different compounding frequencies.

Rate of Production

The speed at which goods or services are produced, usually measured over a specific time period.

Plant Workers

Individuals employed in industrial or manufacturing settings, responsible for operating machinery and producing goods.