Which of the Following Depicts the Current Ratio

question 8

Multiple Choice

Which of the following depicts the current ratio?

• A) (current assets - inventory) ÷ current liabilities
• B) currents assets ÷ total assets
• C) (current assets - inventory) ÷ total assets
• D) current assets ÷ current liabilities

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Definitions:

Strict Product Liability

A legal doctrine that holds sellers or manufacturers liable for defective products regardless of fault or intent, as long as the product was used as intended.

Manufacturer Actions

Refers to the measures or steps taken by a manufacturer in response to product design, production, marketing, and safety concerns.

Defective Condition

A state of imperfection or malfunction in a product that makes it hazardous or unfit for its intended use.

State-Of-The-Art Defense

A legal defense used in product liability cases where the defendant claims the product was using the best technology available at the time of design or manufacture.