Select from the following list the letter of the ratio title for the formula provided in the question.
-Select the letter of the ratio title that corresponds to the following formula.
$\frac{\text { Total current assets}}{\text {Total cur rent liabilities}}$
A)Current ratio
B)Acid-test (quick) ratio
C)Inventory turnover
D)Accounts receivable turnover
E)Day's sales in average accounts receivable
F)Debt ratio
G)Times-interest-earned ratio
H)Rate of return on net sales (profit margin)
I)Rate of return on total assets
J)Rate of return on common shareholders' equity
K)Earnings per common share
L)Price/earnings ratio
M)Dividend yield
N)Book value per common share

Question

Select from the following list the letter of the ratio title for the formula provided in the question.
-Select the letter of the ratio title that corresponds to the following formula.
 $\frac{\text { Total current assets}}{\text {Total cur rent liabilities}}$
A)Current ratio
B)Acid-test (quick) ratio
C)Inventory turnover
D)Accounts receivable turnover
E)Day's sales in average accounts receivable
F)Debt ratio
G)Times-interest-earned ratio
H)Rate of return on net sales (profit margin)
I)Rate of return on total assets
J)Rate of return on common shareholders' equity
K)Earnings per common share
L)Price/earnings ratio
M)Dividend yield
N)Book value per common share

Quizplus · Accepted Answer

The formula $\frac{\text{Total current assets}}{\text{Total current liabilities}}$ is used to calculate the Current Ratio, which measures a company's ability to pay off its short-term liabilities with its short-term assets.

Select from the Following List the Letter of the Ratio Total current assetsTotal cur rent liabilities\frac{\text { Total current assets}}{\text {Total cur rent liabilities}}Total cur rent liabilities Total current assets​

Select from the Following List the Letter of the Ratio $\frac{\text { Total current assets}}{\text {Total cur rent liabilities}}$