When analyzing a firm's long-term, debt-paying ability, we only want to determine the firm's ability to pay the principal.
举一反三
- Typically, which of the following would be considered to be the most indicative of a firm's long-term debt paying ability? A: working capital B: Debt ratio C: acid test D: cash ratio
- The current ratio is used to evaluate a firm's ability to pay its short-term debts.
- refers to a firm’s ability to meet short-term obligations.
- Typically, which of the following would be considered to be the most indicative of a firm's short-term debt paying ability? A: working capital B: current ratio C: acid test D: cash ratio E: days' sales in receivables
- Liquidity refers to a company's ability to pay its long-term obligations.