The current ratio: ()
A: Is used to measure a company's profitability.
B: Is used to measure the relation between assets and long-term debt.
C: Measures the effect of operating income on profit.
D: Is used to help evaluate a company's ability to pay its debts in the near future.
A: Is used to measure a company's profitability.
B: Is used to measure the relation between assets and long-term debt.
C: Measures the effect of operating income on profit.
D: Is used to help evaluate a company's ability to pay its debts in the near future.
举一反三
- The current ratio is used to help assess a company's ability to pay its debts in the near future.
- The current ratio is used to evaluate a firm's ability to pay its short-term debts.
- 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.
- The inventory turnover ratio: A: Is used to analyze profitability. B: Is used to measure solvency. C: Reveals how many times a company turns over (sells) its merchandise inventory. D: Validates the acid-test ratio. E: Calculation depends on the company's inventory valuation method.
- The days' sales uncollected ratio measures a company's ability to manage its debt.