The Current Ratio

question 16

Multiple Choice

The current ratio:

• A)Is computed by dividing current assets by current liabilities.
• B)Is computed by subtracting current liabilities from current assets.
• C)Remains unchanged throughout the operating cycle.
• D)Is a measure of short-term profitability.

---

Definitions:

Gallery Sketch

A preliminary drawing or outline intended to showcase or plan the layout of an art exhibit or gallery.

Photo Montage

A composite picture made by combining several different photos, typically arranged in a way that blends them into a coherent whole.

Video

Moving visual media that can be recorded, streamed, or played back for the purpose of entertainment, education, or communication.

Single Business Plan

A strategic document outlining the operational and financial objectives of a business, and detailed plans and budgets showing how the objectives are to be realized.