The Value of Current Assets Divided by Current Liabilities Is

question 70

Multiple Choice

The value of current assets divided by current liabilities is called:

• A) inventory turnover ratio.
• B) current ratio.
• C) total assets to total liabilities ratio.
• D) current equity ratio.

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Definitions:

Fed

Short for the Federal Reserve, which is the central banking system of the United States, responsible for monetary policy.

Interest Rates

The cost of borrowing money or the return on investment, expressed as a percentage of the principal.

Wealth Effect

The change in spending behavior by individuals or households due to a change in their wealth, often as a result of asset price changes.