The Formula to Compute the Current Ratio Is

question 182

Multiple Choice

The formula to compute the current ratio is

• A)(cash + short-term investments + net current liabilities)/current liabilities.
• B)(current liabilities +short-term investments + net current receivables)divided by current assets.
• C)current liabilities/current assets.
• D)current assets/current liabilities.

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Definitions:

Antitrust Cases

Legal actions taken by government entities to prevent or reduce monopolies and maintain competition within markets.

Federal Trade Commission

A federal agency established to promote consumer protection and the elimination and prevention of anticompetitive business practices.

Relevant Market

A market segment defined by the interchangeability of goods or services, determined by factors such as geographic reach, product characteristics, and consumer preferences, used for analyzing competition and regulatory concerns.

Horizontal Merger

A business consolidation that occurs between firms operating in the same industry, often aimed at achieving economies of scale, efficiencies, or increased market share.