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Match Each of the Ratios Named with the Proper Formula

question 68

Multiple Choice

Match each of the ratios named with the proper formula for computation.
-Cash Flows from Operating Activities / Current Liabilities


Definitions:

365-Day Year

A convention used in interest calculations assuming a full year consists of 365 days.

Total Amount

The complete sum or aggregate of quantities, such as the final amount due for payment or the sum total of assets.

Simple Interest

Interest calculated only on the initial amount of money deposited or loaned, not on any interest accrued over time.

Ordinary Interest

Interest calculated based on a 360-day year, often used in banking for loans and savings.

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