Multiple Choice
Which of the following ratios is considered to be a more stringent measure of a company's ability to pay its current liabilities than the current ratio?
A) debt ratio
B) equity ratio
C) days' sales in receivables
D) acid-test ratio
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q5: Trevino Company has decided to factor its
Q6: Under the allowance method, the entry to
Q7: Under the allowance method, the entry to
Q8: Generally, the higher the acid-test ratio the
Q9: If a bookkeeper mistakenly recorded a disbursement
Q11: In a bank reconciliation, an NSF cheque
Q12: A company with net sales of $500,000,
Q13: What category of account is the Allowance
Q14: If a bank reconciliation included $600 of
Q15: Waterloo Limited accepts a note to settle