Henry Currently Has $1,250 in Monetary Assets and Also Has

question 54

Multiple Choice

Henry currently has $1,250 in monetary assets and also has $1,250 in current liabilities.What is his current ratio?

• A)1 time
• B)100 percent
• C)1 percent
• D)0

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Definitions:

Residual Income

The amount of income that an individual has after all personal debts and expenses, including a mortgage, have been paid.

Minimum Return

The lowest acceptable return on investment that an investor is willing to accept, often used in evaluating projects or performance.

Investment Turnover

A measure of a company's efficiency in using its assets to generate sales revenue; it calculates how quickly investments are converted into income.

Profit Margin

A financial ratio indicating the percentage of revenue that remains as profit after all expenses are deducted.