Multiple Choice
Choose the correct explanation for the current ratio.
A) A measure of a business's ability to pay debts and obligations due beyond 1 year
B) A measure of a business's ability to pay debts and obligations due within 2 years
C) A measure of a business's ability to pay debts and obligations due within 1 year
D) A measure of a business's ability to pay debts and obligations due within 1 year,excluding the value of inventory and prepaid expenses
Correct Answer:
Verified
Correct Answer:
Verified
Q4: The solvency test:<br>A)is a requirement for companies
Q5: Choose the correct definition for long-term viability.<br>A)The
Q6: Choose the correct explanation for the liquidity
Q7: Return on equity:<br>A)measures the dividends payable to
Q8: A price/earnings ratio above the industry average
Q10: The lower the debt ratio:<br>A)the harder it
Q11: If accounts receivable (debtors)turnover is speeding up,which
Q12: Choose the correct definition for financial stability.<br>A)The
Q13: The following financial statements are for Rupert's
Q14: Choose the correct statement: the debt ratio:<br>A)shows