Which of the Following Financial Ratios Is the Correct Formula

question 20

Multiple Choice

Which of the following financial ratios is the correct formula for the current ratio?

• A) Current assets-inventory/current liabilities
• B) Current assets/current liabilities
• C) Sales/average inventory
• D) Net income/owner's equity

Recognize the impact of diversification on financial analysis and reporting.

Distinguish between continuing and discontinued operations in financial statements.

Identify key indicators of a company's future financial performance.

Understand the definition and purposes of the statement of cash flows.

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Definitions:

Threatened

A conservation status indicating that a species is likely to become endangered within the foreseeable future throughout all or a significant portion of its range.

Seed Gene Banks

Facilities that store seeds to preserve genetic diversity for future crop breeding, research, and conservation efforts.

Refrigerated Environments

Controlled spaces designed to maintain a lower temperature to preserve perishable goods or provide a cool habitat.

Low Humidity

A condition of the atmosphere in which the concentration of water vapor is low, often leading to discomfort, dehydration, and preservation of materials.