The Current Ratio Is

question 45

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:

Sum

An aggregate function in database and spreadsheet software that calculates the total of a set of numerical values.

Subtotal Query

A database query that generates a subtotal of aggregated data based on specified criteria, often used in reporting and analysis.

Query Design Grid

A graphical user interface in database software that assists users in building queries by defining fields, sort orders, and criteria visually.

Summary Query

A database query that aggregates data, such as summing numbers or counting occurrences, to provide a summary rather than detailed records.