The ﬁnancial ratio measured as current assets divided by average daily operating costs is the:
A) Cash ratio.
B) NWC to total assets ratio.
C) Acid-test ratio.
D) Interval measure.
E) Operating measure.

Question

Quizplus · Accepted Answer

The ratio measured as current assets divided by average daily operating costs is known as the interval measure. This ratio helps to determine how long a company can operate using its current assets before it needs additional funding or cash flow. Therefore, option D is the correct answer.

The ﬁNancial Ratio Measured as Current Assets Divided by Average