The Current Ratio May Also Be Referred to as the

question 13

Multiple Choice

The current ratio may also be referred to as the

• A) short run ratio.
• B) acid-test ratio.
• C) working capital ratio.
• D) contemporary ratio.

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Definitions:

Markdown Rate

The percentage decrease from the original price of an item to its new sale price.

Raisins

Dried grapes often used in cooking and baking or eaten as a snack.

Mark-up

The gap between the acquisition cost of a product or service and the price at which it's sold, calculated as a fraction of the initial cost.

Operating Profit

Income generated by the primary activities of a business before tax and interest deductions are taken into account.