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:

Abdominal Aorta Aneurism

An abnormal enlargement of the lower part of the aorta, the major blood vessel supplying blood to the body, which can rupture and cause life-threatening bleeding.

Warfarin (Coumadin)

A medication used as an anticoagulant (blood thinner) to prevent the formation of harmful blood clots.

INR

International Normalized Ratio, a blood test used to measure the time it takes for blood to clot, important for monitoring patients on anticoagulant therapy.