1. value: 1.42 points The current ratio is calculated by dividing current assets by current liabilities. O dividing current liabilities by current assets. O subtracting current liabilities from current assets. subtracting current assets from current liabilities, Check my work 1. 2. value: 1.42 points Which of the following statements is true? O Lower current ratios suggest greater liquidity. O Companies should maintain the highest current ratio possible Higher current ratios suggest greater the liquidity. O Companies should maintain the lowest current ratio possible. eBook & Resources eBook: Use the current ratio to assess the level of liquidity. 3. value: values 1.42 points The debt to asset ratio is a measure of O liquidity. O solvency. earning capacity O cash flow. eBook & Resources eBook: Use the current ratio to assess the level of liquidity Check my work 4. value 1.42 points The debt to assets ratio is calculated by O subtracting total liabilities from total assets. O subtracting total assets from total liabilities. O dividing total assets by total liabilities. O dividing total liabilities by total assets. value: 1.42 points Omar Company reported $1,000 of current assets, $3,000 of long-term assets, $400 of current liabilities and $2,600 of long-term liabilities on its Year 1 balance sheet. Based on this information 0.40 0.75 2.50 1.33 eBook & Resources eBook: Use the current ratio to assess the level of liquidity Check my work value 1.42 points Omar Company reported $1,000 of current assets, $3,000 of long-term assets, $400 of current liabilities and $2,600 of long-term liabilities shown on its Year 1 balance sheet. Based on this information Omar's debt to assets ratio is. 0 0.40 0.75 2.50 1.33 value: 1.48 points Which of the following industries is likely to have the highest debt to assets ratio? Electric utilities O Clothing stores O Building supplies The debt to asset ratio is likely to be similar for all industries. eBook & Resources eBook: Use the current ratio to assess the level of liquidity. Check my work