The Current Ratio Is

question 88

Multiple Choice

The current ratio is:

• A) quick assets divided by current liabilities.
• B) assets divided by liabilities.
• C) current assets divided by current liabilities.
• D) net sales divided by current liabilities.

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Definitions:

Payroll Tax

Burdens placed on employers along with their employees, customarily determined as a percentage of the staff's wages.

Corporate Profits Tax

A tax imposed on the income or profit of corporations.

Long Run

A time frame where every element of production and expenses can vary, enabling complete adaptation to any shifts.

Capital/Labor Intensity

A measure of the ratio of capital to labor in the production process, indicating whether an economy or sector relies more on capital investment or labor.