The Quick Ratio Is Calculated as

question 29

Multiple Choice

The quick ratio is calculated as

• A)current assets divided by current liabilities.
• B)current assets minus inventory,divided by current liabilities.
• C)net working capital divided by current liabilities.
• D)cash on hand divided by current liabilities.
• E)current liabilities divided by current assets.

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Definitions:

Tax Deductible

Expenses or costs that can be subtracted from gross income to reduce the taxable income.

ERISA

The Employee Retirement Income Security Act of 1974, a federal law that sets minimum standards for most voluntarily established retirement and health plans in private industry.

Pension Reform Act

Legislation aimed at improving the management and sustainability of pension funds.

Funding Agency

An organization that provides financial support for various projects or programs, often within the public or nonprofit sector.