Current assets expressed as a multiple of current liabilities is called the:
A) Working capital ratio.
B) Quick ratio.
C) Acid-test ratio.
D) Current ratio.
E) Cash ratio.

Name: Current assets expressed as a multiple of current liabilities is called the: A) Working capital ratio. B) Quick ratio. C) Acid-test ratio. D) Current ratio. E) Cash ratio.
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Question

Quizplus · Accepted Answer

The current ratio is calculated by dividing current assets by current liabilities, thus expressing current assets as a multiple of current liabilities.

Current Assets Expressed as a Multiple of Current Liabilities Is