Which of the Following Statements About the Current Ratio Is

question 86

Multiple Choice

Which of the following statements about the current ratio is false?

• A)it includes inventories
• B)it is a measure of profitability
• C)it is equal to current assets divided by current liabilities
• D)it is affected by the accounting methods used by a company

---

Definitions:

Inverse Function

A function that reverses the effect of the original function, such that applying both the function and its inverse will return the original input.

Graph

A drawing that portrays the network of relations or connections between various items through the use of distinct features like dots, lines, and bars.

Inverse Function

A function that reverses the operations of a given function, such that applying both functions in succession results in the original value.

Square Root

The value that, when multiplied by itself, yields the original number; it is denoted as \(\sqrt{x}\) for a number \(x\).