The Current Ratio Equals

question 7

Multiple Choice

The current ratio equals

• A)current assets plus current liabilities.
• B)current assets minus current liabilities.
• C)current assets multiplied by current liabilities.
• D)current assets divided by current liabilities.
• E)current liabilities minus current assets.

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Definitions:

Payoff

The return or potential gain from an investment or decision, which can be seen in financial, strategic, or personal contexts.

Revenues

The total incomes that a business receives from its normal business activities, usually from the sale of goods and services to customers.

Useful Life

The expected period of time during which an asset remains useful to the owner or is capable of generating revenue.

Interest Rate

The percentage of a sum of money charged for its use, reflecting the cost of credit or the return on investment.