The Current Ratio Is

question 96

Multiple Choice

The current ratio is

• A)Current assets divided by current liabilities.
• B)Cash and short-term investments divided by current liabilities.
• C)Cash,short-term investments,and accounts receivable divided by current liabilities.
• D)Cash,short-term investments,accounts receivable,and inventory divided by current liabilities.

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Definitions:

Year 2

This refers to the second year of a business or financial operation, often used in context to compare data year-over-year.

Earnings Per Share

A company's net profit divided by the number of its outstanding shares, indicating the portion of a company's profit allocated to each share of stock.

Dividend Yield Ratio

A financial metric that measures the dividend per share a company pays out to its shareholders relative to its share price, indicating the income return on the investment.

Dividend Yield Ratio

A financial ratio indicating how much a company pays out in dividends each year relative to its share price.