Which of the Statements Below Is FALSE

question 9

Multiple Choice

Which of the statements below is FALSE?

• A)The acid ratio test equals current assets minus inventories divided by current liabilities.
• B)Examples of liquidity ratios include the current ratio,the cash coverage ratio,and the quick ratio.
• C)The current ratio is current assets divided by current liabilities.
• D)Inventory turnover equals cost of goods sold divided by inventory.

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Definitions:

Recession

A period of declining real incomes and rising unemployment.

Money Supply

The quantity of money available in the economy.

Government Expenditures

The total amount spent by the government for its operations, programs, and public services.

Business Cycle

Fluctuations in economic activity, such as employment and production