Which Type of Financial Ratio Is Computed by Dividing the Organization's

question 73

Multiple Choice

Which type of financial ratio is computed by dividing the organization's present assets by its present liabilities?

• A) Inventory turnover ratio
• B) Days sales outstanding ratio
• C) Profit ratio
• D) Current ratio
• E) Debt-to-assets ratio

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Definitions:

Proxy Contest

An event where two or more competing parties seek to collect enough shareholder votes to control the company's board of directors.

Asset Purchase

The buying of a company's assets instead of its stock, often to acquire specific items rather than taking over the business entirely.

Leveraged Buyout

An acquisition where the buyer uses a significant amount of borrowed money to finance the purchase of a company, often using the assets of the company being bought as collateral for the loans.

Corporate Takeover

The acquisition of control over a corporation by another company or investor group, typically through the purchase of a majority of its stock.