The Ratio That Averages About 2

question 158

Multiple Choice

The ratio that averages about 2.0 for all industries is the

• A) inventory turnover.
• B) acid-test ratio.
• C) current ratio.
• D) debt-to-assets ratio.
• E) debt-to-equity ratio.

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Definitions:

Partnership Business

A business structure in which two or more individuals manage and operate a business in accordance with the terms and objectives set out in a Partnership Agreement.

Full Information

A state in which all relevant data and facts are disclosed, allowing for well-informed decision making.

Good Faith

A principle that denotes sincerity, honesty, and fairness in transactions without the intention of deception.

Key Element

A fundamental component or aspect that is necessary for the functionality or efficacy of a system, document, or process.