What Is the Current Ratio

question 147

Multiple Choice

What is the current ratio?

• A) 1.2 to 1.
• B) Less than 2 to 1, but not 1.2 to 1.
• C) 2.6 to 1.
• D) More than 2 to 1, but not 2.6 to 1.

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Definitions:

Price Recovery

The process of regaining the cost or value of something, often related to the selling price of goods or services after a period of lower prices or losses.

CISG

The Convention on Contracts for the International Sale of Goods by the United Nations, is a treaty establishing a standardized framework for global trade.

Contractual Obligations

Duties that a party is legally required to perform as specified in a contract, failure of which may lead to legal consequences.

Immediate Delivery

The rapid transfer of goods or securities from seller to buyer without delay.