The Current Ratio Is Computed by Dividing Current Liabilities by Current

question 201

True/False

The current ratio is computed by dividing current liabilities by current assets.

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Definitions:

Office Supplies

Items used in offices for daily operations, including paper, pens, files, and other stationery.

Salaries Payable

A liability account that reflects the amounts owed to employees for services rendered but not yet paid.

Total Assets

The sum of all current and non-current assets owned by a company.

Total Expenses

The sum of all costs and expenses incurred by a business or organization during a specific period.