Dividing the analysis amount by the base amount and multiplying the result by 100.

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter5: Completing The Accounting Cycle
Section: Chapter Questions
Problem 14Q: Describe the calculation required to compute the current ratio. Explain the significance.
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Dividing the analysis amount by the base amount and multiplying the result by 100.
Transcribed Image Text:Dividing the analysis amount by the base amount and multiplying the result by 100.
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