The common ratio is the ratio of: Options: A . &nbspNet credit sales to average net receivable B . &nbspCurrent assets to current liabilities C . &nbspGross profit to net sales D . &nbspNet income to owner’s equity

The common ratio is the ratio of:

Question

The common ratio is the ratio of:

Options:

A . Net credit sales to average net receivable

B . Current assets to current liabilities

C . Gross profit to net sales

D . Net income to owner’s equity

Answer: Option B

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