The Current Ratio Is

question 151

Multiple Choice

The current ratio is

• A) calculated by dividing current liabilities by current assets.
• B) used to evaluate a company's liquidity and short-term debt paying ability.
• C) used to evaluate a company's solvency and long-term debt paying ability.
• D) calculated by subtracting current liabilities from current assets.

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Definitions:

Income Security

A safety net ensuring that individuals have access to sufficient income to meet their basic needs, often through social welfare programs or policies.

Social Security

A government program designed to provide financial assistance to people who are retired, unemployed, or otherwise unable to earn a sufficient income.

Mobilize Resources

The act of organizing, deploying, and managing resources such as people, capital, and materials to achieve specific goals.

Media Awareness

The understanding and critical evaluation of how mass media, advertising, and popular culture affect individuals and society.