• 2021-04-14
    refers to a firm’s ability to meet short-term obligations.
  • liquidity

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      The current ratio is used to evaluate a firm's ability to pay its short-term debts.

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      The effective demand for natural resources: Refers to people's need for natural resources and the ability to meet such needs.

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      When analyzing a firm's long-term, debt-paying ability, we only want to determine the firm's ability to pay the principal.

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      The financial ratios that measure a firm's ability to pay its short-term debts are called A: leverage ratios. B: liquidity ratios. C: equity ratios. D: profitability ratios.

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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