Current Assets Expressed as a Multiple of Current Liabilities Is

question 383

Multiple Choice

Current assets expressed as a multiple of current liabilities is called the:

• A) Working capital ratio.
• B) Quick ratio.
• C) Acid-test ratio.
• D) Current ratio.
• E) Cash ratio.

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Definitions:

Long-Run Equilibrium

A state in which all inputs and outputs in a market are fully adjusted and there is no tendency for change, often associated with perfect competition markets.

Marginal Revenue

The extra revenue obtained by selling an additional unit of a product or service.

Marginal Cost

The cost increase from producing a further unit of a product or service.

Long-Run Equilibrium

Long-run equilibrium occurs in a market when all firms earn normal profits, and no new firms have an incentive to enter or exit, resulting in market stability over time.