The Current Ratio Measures

question 134

Multiple Choice

The current ratio measures:

• A)the amount of total assets available to the business currently.
• B)a company's ability to pay current liabilities with its total assets.
• C)a company's ability to pay current liabilities with current assets.
• D)a company's profitability during a particular period.

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Definitions:

Disclaimer

A statement that denies responsibility or affiliation, often used to limit legal liability or to distance oneself from certain information or actions.

Unconscionable

A term applied to a contract in which one party has so much more bargaining power than the other party that the powerful party dictates the terms of the agreement and eliminates the other party’s free will.

Warranty Of Title

An assurance, inferred in every Uniform Commercial Code (UCC) sales transaction, that the seller has good and valid title to the goods and has the right to transfer the title free and clear of any liens, judgments, or infringements of intellectual property rights of which the buyer does not have knowledge.

UCC

The Uniform Commercial Code delivers a full suite of legal stipulations for handling commercial transactions across the United States.