Because the Assets Included in the Current Ratio Have Different

question 57

Multiple Choice

Because the assets included in the current ratio have different levels of liquidity that reflect different degrees of collectability,many companies use which of the following ratios to measure current liquidity?

• A)Current ratio.
• B)Acid-test.
• C)Working capital.
• D)None of these ans choices are correct.

---

Definitions:

Retail Outlets

Places where goods and services are sold directly to consumers, ranging from brick-and-mortar stores to online platforms.

Vertical Marketing System

A supply chain in which the members act as a unified system; there are three types.

Formal

Pertains to actions, processes, or appearances that follow established rules, conventions, or procedures, often in professional or official contexts.

Independent

Not influenced or controlled by others; operating freely.