BUISENESS MANAGEMENT
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Either A or B
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None of the above
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Detailed explanation-1: -Which of the following statements is true regarding the current ratio?-The current ratio is calculated as current assets divided by current liabilities.
Detailed explanation-2: -Answer and Explanation: The answer is D. Ratios help analyze the performance of a company and compare its performance with other firms within that industry.
Detailed explanation-3: -Answer and Explanation: A) It shows a company’s stock issuances and dividends paid to shareholders is true of the statement of stockholders’ equity.
Detailed explanation-4: -Equity is considered a type of liability, as it represents funds owed by the business to the shareholders/owners. On the balance sheet, Equity = Total Assets – Total Liabilities. The two most important equity items are: Paid-in capital: the dollar amount shareholders/owners paid when the stock was first offered.