The Current Ratio Is Calculated As

question 107

Multiple Choice

The current ratio is calculated as:

• A) (total current liabilities)/(total current assets)
• B) (cash + short-term investments + net current receivables)/(total current liabilities)
• C) (cash + short-term investments + net current receivables)/(total current assets)
• D) (total current assets)/(total current liabilities)

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Definitions:

Mutual Funds

Mutual funds are investment vehicles that pool money from numerous investors to purchase a diversified portfolio of stocks, bonds, or other securities.

U.S. Treasury Bonds

Long-term debt securities issued by the United States Department of the Treasury with a maturity of more than ten years.

Equity Mutual Fund

A corporation that pools the funds of investors, including small investors, and uses them to purchase a bundle of stocks.