Which of the Following Statements Is Not Correct

question 31

Multiple Choice

Which of the following statements is not correct?

• A)A current ratio of 3.5 to 1 means that a firm has $3.50 in current liabilities for every $1 of current assets.
• B)The gross profit percentage is calculated by dividing the gross profit for the year by the net sales for the year.
• C)Working capital is the difference between total current assets and total current liabilities.
• D)The average inventory is calculated by adding the beginning inventory to the ending inventory and dividing the sum by 2.

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Definitions:

Cognitive Response

The mental reactions or thought processes elicited in an individual as a result of exposure to stimuli or information.

Stress

A condition of mental or emotional strain or tension resulting from adverse or demanding circumstances.

Clinical Decision

A judgment made by healthcare professionals based on a comprehensive assessment of patient information and evidence to guide patient care and treatment.

Defense Mechanism

Psychological strategies unconsciously used to protect oneself from anxiety arising from unacceptable thoughts or feelings.