Which Financial Ratio Is Computed by Dividing Current Assets by Current

question 100

Multiple Choice

Which financial ratio is computed by dividing current assets by current liabilities?

• A) quick ratio
• B) debt to equity
• C) accounts receivable turnover
• D) current ratio

---

Definitions:

Investment

The allocation of resources, usually money, in the expectation of generating an income or profit over time.

Compounded Semi-Annually

The process of calculating and adding interest to the principal sum of a loan or deposit twice a year.

9 Years

A period of time equivalent to nine cycles of 365 (or 366 in leap years) days, commonly used in reference to durations or time frames in various contexts.

Contract

A legally binding agreement between two or more parties that outlines obligations and rights of those involved.