Decide Whether the Statement Translates into an Expression or an Equation

question 237

Multiple Choice

Decide whether the statement translates into an expression or an equation.
-the ratio of a number and 8

• A)Equation
• B)Expression

---

Definitions:

Current Ratio

A financial indicator used to assess whether a company can handle its obligations in the short term, calculated by the ratio of current assets to current liabilities.

Acid-Test Ratio

A liquidity metric that measures a company's ability to pay off its current liabilities with its quick assets without relying on inventory sales.

Times Interest Earned

A financial metric that measures a company's ability to meet its debt obligations by comparing its interest expenses to its earnings before interest and taxes (EBIT).

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term liquidity and operational efficiency.