The Current Ratio Is Calculated Using the Values from the Income

question 124

True/False

The current ratio is calculated using the values from the income statement.

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Definitions:

Current Liabilities

Obligations or debts that a company must pay within one year or within its operating cycle if longer.

Gross Margin Ratio

A financial ratio that measures a company's financial health, calculated by subtracting the cost of goods sold from net sales and dividing by net sales.

Sales Revenue

The total amount of money received by a company from sales of goods or services before any expenses are subtracted.

Cost of Goods Sold

Expenses specifically related to producing the merchandise a company markets.