A Current Ratio of 1

question 27

True/False

A current ratio of 1.5 times would mean that the business has 1.5 times more assets than liabilities.

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Definitions:

Saving Rate

The percentage of take-home pay that is set aside for savings instead of being used for consumer spending.

Economic Growth

A rise in the economy's inflation-adjusted value of produced goods and services over time.

Net Worth

Net Worth is the total value of an individual's or entity's assets minus liabilities, indicating financial health or wealth at a point in time.

Assets

Resources owned by a person or business that have economic value or expected future benefit.