• 2022-06-06
    The current ratio is used to evaluate a firm's ability to pay its short-term debts.
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      From a cash flow position, which one of the following ratios best measures a firm's ability to pay the interest on its debts? A: times interest earned ratio B: cash coverage ratio C: cash ratio D: quick ratio E: Interval measure

    • 1

      The indicator ratio that should be used to assess a company's ability to meet its short-term obligations is its: A: liquidity. B: debt. C: profitability. D: capital structure.

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      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

    • 3

      The debt ratio indicates: A: a.the ability of the firm to pay its current obligations B: b.the efficiency of the use of total assets C: c.the magnification of earnings caused by leverage D: d.a comparison of liabilities with total assets

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      refers to a firm’s ability to meet short-term obligations.