Which of the Following Ratios Is Calculated as (Average Current

question 56

Multiple Choice

Which of the following ratios is calculated as (Average Current Assets - Average Inventories) ÷ Average Current Liabilities?

• A)current ratio
• B)quick ratio
• C)net-working-capital ratio
• D)current liabilities-to-total-debt ratio

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Definitions:

English Rule

A legal principle where the losing party in a lawsuit is required to pay the winning party's legal costs.

American Rule

A legal principle stating that each party in a lawsuit typically pays their own attorney's fees, regardless of who wins.

First-Assignment-In-Time Rule

A principle stating that, in case of a conflict, the rights to a property or asset are granted to the first party to receive assignment or claim to it.

Third-Party Beneficiary

A person or group that benefits from a contract made between two other parties, despite not being a direct party to the contract.