The Current Ratio Is Measured As

question 79

Multiple Choice

The current ratio is measured as:

• A)current assets minus current liabilities.
• B)current assets divided by current liabilities.
• C)current liabilities minus inventory,divided by current assets.
• D)cash on hand divided by current liabilities.
• E)current liabilities divided by current assets.

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Definitions:

Decreases

A reduction in quantity, size, or intensity of something.

Cross-Price Elasticity

A measure of how much the quantity demanded of one good responds to a change in the price of another good, indicating the relationship between the goods (substitutes or complements).

Substitutes

Goods or services that can be used in place of each other; when the price of one increases, the demand for the other is likely to increase.

Complements

Complements are goods or services that are used together, where the increase in the consumption of one leads to an increase in the consumption of the other.