Which of the following ratios is calculated by dividing current assets by current liabilities?
A. Fixed asset turnover ratio
B. Net profit margin ratio
C. Return on equity ratio
D. Current ratio
Answer: D
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Four steps for business analysis are discussed in the chapter (strategy analysis, accounting analysis, financial analysis, and prospective analysis). As a financial analyst, explain why each of the four steps is a critical part of your job, and how they relate to one another
Which of the following statements accurately describes a fidelity bond?
A. Insurance that the company buys to protect itself from loss due to employee dishonesty. B. Proper procedures for processing transactions. C. Procedures to provide reasonable assurance that the objectives of a company are accomplished. D. Guidelines or policies that limit the actions of different levels of management.
The Consumer Credit Protection Act limits the garnishment of wages to the lesser of _____ of the debtor's disposable earnings for the week or the amount by which disposable earnings for the week exceed _____ times the current federal minimum hourly wage
a. 10%; 30 b. 25%; 30 c. 30%; 25 d. 35%; 40
An investment bank is a financial institution that
A) bundles small deposits into larger loans. B) helps corporations raise funds. C) holds most of its assets in commercial paper. D) does all of the above. E) does only A and B of the above.