The Current Ratio

question 33

Multiple Choice

The current ratio:

• A)is a measure of a firm's ability to pay its current liabilities.
• B)equals current liabilities divided by current assets.
• C)equals total assets divided by total liabilities.
• D)is a measure of profitability.

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Definitions:

Agents

Persons authorized to act on behalf of another, known as the principal, in legal or business matters.

Succession Planning

The strategy for identifying and developing new leaders who can replace old leaders when they leave, retire, or pass away.

Career Planning

The process of setting career objectives and determining the steps and actions to achieve them.

Number

A mathematical object used to count, measure, and label.