Which ratio would you use to examine a company's ability to pay its debts in the short term?
A. Return on equity
B. Earnings per share
C. Acid-test ratio
D. Debt to assets ratio
Answer: C
You might also like to view...
The framework of COSO's Enterprise Risk Management can best be characterized as:
A. Incorporate enhanced internal control principles into enhanced corporate governance B. Incorporate enhanced corporate governance into internal control principles C. Incorporate enhanced audit sampling procedures in substantive testing D. Incorporate enhanced audit sampling procedures in the testing of internal controls
Which of the following, if true, most strengthens the case that Josemaria has a good credit score?
A) Josemaria pays off his credit card bills every month. B) Josemaria earns a good income at his job. C) Josemaria just bought a new car with no money down. D) Josemaria got good grades in college. E) Josemaria has lots of credit cards.
Which of the following statements regarding the calculation of taxable income is false?
A. The first step in the calculation of taxable income is determining the taxpayer's total income. B. Adjusted gross income can be reduced by the greater of the standard deduction or itemized deductions. C. Adjusted gross income is equal to total income less above-the-line deductions. D. Taxpayers are allowed to deduct the greater of itemized deductions or above-the-line deductions in calculating taxable income.
Estimates should be based on normal conditions, efficient methods, and a normal level of resources. Explain.
Fill in the blank(s) with the appropriate word(s).