Match each of the ratios named with the proper formula for computation.
-Current Assets / Current Liabilities
A)Current Ratio
B)Quick Ratio
C)Cash Ratio
D)Operating Cash Flow Ratio

Question

Quizplus · Accepted Answer

The formula for computing the Current Ratio is Current Assets / Current Liabilities, which matches the ratio named "Current Ratio." The other ratios have different formulas: 
- Quick Ratio is (Current Assets - Inventory) / Current Liabilities
- Cash Ratio is Cash and Cash Equivalents / Current Liabilities
- Operating Cash Flow Ratio is Operating Cash Flow / Current Liabilities

Match Each of the Ratios Named with the Proper Formula