Multiple Choice
Choose the correct explanation for the liquidity (quick) 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
Q1: If a firm drops its price to
Q2: Choose the correct definition for liquidity.<br>A)The ability
Q3: If inventory turnover is slowing down,which of
Q4: The solvency test:<br>A)is a requirement for companies
Q5: Choose the correct definition for long-term viability.<br>A)The
Q7: Return on equity:<br>A)measures the dividends payable to
Q8: A price/earnings ratio above the industry average
Q9: Choose the correct explanation for the current
Q10: The lower the debt ratio:<br>A)the harder it
Q11: If accounts receivable (debtors)turnover is speeding up,which