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Current assets divided by current liabilities is the:Multiple ChoiceCurrent ratio.Quick ratio.Debt ratio.Liquidity ratio.Solvency ratio.

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Solution 1

Break Down the Problem

  1. Identify the terms provided in the question.
  2. Understand the financial metrics mentioned.

Relevant Concepts

  1. Current Ratio: This is calculated as Current Assets / Current Liabilities. It measures a company's ability to cover its short-term obligations.
    Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI  is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI  is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI  is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI  is a powerful AI-powered study tool designed to help you to solve study problem.
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Liabilities are classified on the balance sheet as current or

Where are Short-term Investments found on the Balance Sheet? 1 pointCurrent LiabilitiesCurrent AssetsNoncurrent AssetsNoncurrent Liabilities

Debt Equity Ratio is :a.Activity Ratiob.Solvency Ratiosc.Operating Ratiod.Liquidity Ratio

Net income divided by average total assets is:Multiple ChoiceProfit margin.Total asset turnover.Current ratio.Days' income in assets.Return on total assets.

ratios measure a company's ability to turn assets into cash to pay its short-term debt.

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