Match the Following Terms with the Appropriate Definition

question 366

Multiple Choice

Match the following terms with the appropriate definition.
-A ratio that is used to help evaluate a company's ability to pay its short-term obligations,
calculated by dividing current assets by current liabilities.

• A)Stockholders' equity
• B)Unclassified balance sheet
• C)Long-term investments
• D)Current liabilities
• E)Closing entries
• F)Current ratio
• G)Plant assets
• H)Current assets
• I)Intangible assets
• J)Classified balance sheet

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Definitions:

Current Tax Liability

The amount of taxes a company is obligated to pay to governmental entities within the current year, based on its earnings.

Non-Current

Assets or liabilities expected to be realized, settled, or consumed beyond one year or the normal operating cycle, whichever is longer.

Current

In financial terms, "current" often relates to assets and liabilities that are expected to be sold, used, or settled within one year.

Decision-Making

The process of making choices by identifying a decision, gathering information, and assessing alternative resolutions.