The Current Ratio

question 112

Multiple Choice

The current ratio:

• A) Is current assets divided by current liabilities.
• B) Helps to assess a company's ability to pay its debts in the near future.
• C) Suggests there may be problems in a business if it is less than 1.
• D) Is a measure of a company's liquidity.
• E) All of these answers are correct.

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Definitions:

ISP

An Internet Service Provider; a company that provides customers with Internet access.

Evil Twin

A malicious Wi-Fi network that pretends to be a legitimate one to intercept personal information or data transmitted by unsuspecting users.

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A telecommunications network that is accessible by the general public, providing data communication services.

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Hardware devices used to connect multiple computers or other network devices together, operating at the physical layer of the OSI model.