Select from the Following List the Letter of the Ratio $\frac{\text { Cash + short-term investments + Net current receivables }}{\text {Current liabilities }}$

question 13

Multiple Choice

Select from the following list the letter of the ratio title for the formula provided in the question.
-Select the letter of the ratio title that corresponds to the following formula.
$\frac{\text { Cash + short-term investments + Net current receivables }}{\text {Current liabilities }}$

• A)Current ratio
• B)Acid-test (quick) ratio
• C)Inventory turnover
• D)Accounts receivable turnover
• E)Day's sales in average accounts receivable
• F)Debt ratio
• G)Times-interest-earned ratio
• H)Rate of return on net sales (profit margin)
• I)Rate of return on total assets
• J)Rate of return on common shareholders' equity
• K)Earnings per common share
• L)Price/earnings ratio
• M)Dividend yield
• N)Book value per common share

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Definitions:

Documenting

The process of creating records for events, processes, or transactions to provide evidence or maintain a history.

Testing

The process of evaluating the functionality, performance, reliability, and security of a product or system through systematic experiments and assessments.

Financial Forecast

Projections of a company's future revenue, expenses, and profitability, used to estimate economic performance and plan business strategies.

Formal Business Plan

A detailed document that outlines a company's objectives, strategies, market analysis, financial forecasts, and management structure required for starting and running the business.