1) How is the current ratio calculated? a. current assets minus current liabilities b. total assets...
1) How is the current ratio calculated?
| a. |
current assets minus current liabilities |
|
| b. |
total assets divided by total liabilities |
|
| c. |
total assets minus total liabilities |
|
| d. |
current assets divided by current liabilities |
2) The common size income statement reports each income statement item as a percentage of
| a. |
net sales |
|
| b. |
net income |
|
| c. |
gross sales |
|
| d. |
total assets |
Homework Answers
1)correct option is "D"
Current ratio is a liquidity ratio that is measured using the following formula:
Current ratio = current asset /current liabilities
2)correct option is "A"
common size income statement is an income statement under which each line item is expressed as percentage of net sales or net revenue
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