The Most Common Liquidity Ratio Is Current Assets to Current

question 25

Multiple Choice

The most common liquidity ratio is current assets to current liabilities, which is called the

• A) Debt-equity ratio.
• B) Current ratio.
• C) Profit loss ratio.
• D) Return on investment ratio.
• E) Stockholders' equity ratio.

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Definitions:

Real GDP

A measure of the value of all goods and services produced by an economy adjusted for price changes or inflation.

Foreign Investment

The investment of capital by individuals, corporations, or governments from one country into business interests within another country.

Standard Of Living

The standard of living refers to the level of wealth, comfort, material goods, and necessities available to a certain socioeconomic class or geographic area.

Goods And Services

The outputs offered by businesses and the economy to satisfy individual or collective needs or wants.