The Current Ratio Is Calculated by Dividing

question 51

Multiple Choice

The current ratio is calculated by dividing

• A) current assets by owners' equity.
• B) current assets by current liabilities.
• C) income by operating expenses.
• D) net sales after taxes by net sales.
• E) accounts receivable by inventory turnover.

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Definitions:

Charitable

Related to the act of giving help, especially financial support, to those in need.

Virtues List

A compilation of moral and ethical qualities considered as positive traits and admired in a person.

Justice

The fair and equitable treatment of individuals, ensuring that rights are upheld and that decisions are made according to the rule of law and ethical standards.

Wisdom

The quality of having experience, knowledge, and good judgment.