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Which of the following ratios is most useful in evaluating liquidity? Answer Return on assets. Return on equity. Debt to equity ratio. Current ratio.

4 points Question 2 The current ratio is calculated as:

Answer
Current assets divided by noncurrent assets. Current assets divided by current liabilities. Current liabilities divided by noncurrent liabilities. Current liabilities divided by current assets.

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6 points Question 3 Excerpts from Stealth Company's December 31, 2013 and 2012, financial statements are presented below:

Stealth Company's 2013 inventory turnover is:

Answer
3.62 times. 3.96 times. 4.07 times. 6.03 times.

 

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