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:

Western Electric Company

An American electrical engineering and manufacturing company that was the primary supplier for AT&T and its Bell System.

Lucent Technologies

A former telecom giant known for its innovations in telecommunications and networking equipment, eventually merged with Alcatel.

Hawthorne Effect

A phenomenon where individuals modify an aspect of their behavior in response to their awareness of being observed.

Manager

A person responsible for controlling or administering an organization or group of staff.