The Current Ratio Is

question 111

Multiple Choice

The current ratio is

• A) used to evaluate a company's liquidity and short-term debt-paying ability
• B) a solvency measure that indicates the margin of safety for bondholders
• C) calculated by dividing current liabilities by current assets
• D) calculated by subtracting current liabilities from current assets

---

Definitions:

Ratification

The act of officially confirming or endorsing a previously unauthorized agreement or action.

Express

Clearly and directly stated, leaving no room for doubt or ambiguity.

Implied

Not directly expressed or stated but understood in the context of the situation or agreement.

Sabbath Laws

Laws prohibiting the performance of certain activities on Sundays.