The Current Ratio Is Calculated as

question 69

Multiple Choice

The current ratio is calculated as

• A)Current assets divided by current liabilities.
• B)Current assets divided by total assets.
• C)Current liabilities divided by current assets.
• D)Current liabilities divided by total liabilities.

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Definitions:

Bullwhip Effect

An occurrence within supply chain management where minor changes in retail demand lead to increasingly significant changes in demand for wholesalers, distributors, and manufacturers.

Dampening

The process of reducing the amplitude or intensity of fluctuations or oscillations in a system or signal.

Amplification

In context, refers to the increase in signal strength or the magnification of the effects or significance of something.

Smoothing

A technique used to remove variability or fluctuations in data or a process, often to reveal underlying trends.