Which of the Following Statements Is True

question 13

Multiple Choice

Which of the following statements is true?

• A)The current ratio measures the ability of a company to pay its current debts.
• B)The current ratio is calculated by dividing current liabilities by current assets.
• C)The current ratio is calculated by dividing current assets by total assets.
• D)The current ratio is calculated by dividing total assets by current assets.

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Definitions:

Short Bone

A type of bone that is as wide as it is long, providing support and stability with little movement, commonly found in the wrist and ankle.

Long Bone

A type of bone that is longer than it is wide, primarily found in the limbs and acting as levers to facilitate movement.

Irregular Bone

Bones that do not fall into any other category due to their irregular shape, such as the vertebrae and certain skull bones.

Flat Bone

A type of bone with a thin, flattened shape, providing protection for internal organs and serving as a site for hematopoiesis; examples include the skull and ribs.