Which of the Following Statements Is TRUE

question 4

Multiple Choice

Which of the following statements is TRUE?

• A)The current ratio is current assets divided by current liabilities.
• B)Total asset turnover is net income divided by total assets.
• C)The cash coverage ratio equals cash divided by current liabilities.
• D)The quick ratio equals current assets - current liabilities divided by current liabilities.

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Definitions:

Unilateral Mistake

An error made by one party in a contract situation, which may not necessarily void the contract unless the other party knew or should have known of the mistake.

Implied Misrepresentation

A false statement or omission made not through direct statements but through implications or conduct that misleads another party.

Undue Influence

Improper or coercive persuasion that leads an individual to act contrary to their free will or without adequate attention to the consequences.

Duress

Coercion or compulsion by threat or force, affecting a person's ability to make a free and informed decision.