What Does the Current Ratio Measure

question 57

Multiple Choice

What does the current ratio measure?

• A)use of assets.
• B)profitability.
• C)investments.
• D)liquidity.

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Definitions:

Bilateral Contract

A type of agreement where both parties involved promise to perform certain actions or obligations, often creating mutual legal obligations.

Unilateral Contract

A contract in which one party makes a promise in exchange for an act (not a promise) by the other party.

Accepted Into College

The act of being granted admission to a college or university program as a recognized student.

Mailbox Rule

A legal doctrine stating that an offer is considered accepted once the acceptance is communicated through the mail, even if the offeror has not yet received it.