The current ratio:
A. Is used to measure the relation between assets and long-term debt.
B. Is used to measure a company's profitability.
C. Is used to help assess a company's ability to pay its debts in the near future.
D. Is calculated by dividing current assets by equity.
E. Measures the effect of operating income on profit.
Answer: C
You might also like to view...
________ are customers who like a store so much that they actively share their positive experiences with friends and family.
A. Early birds B. Store advocates C. Laggards D. Brand ambassadors E. Hedonic shoppers
When M purchases N's $10,000 capital interest for $10,000, the ensuing entry on the books of the partnership would contain a debit to Cash for $10,000
Indicate whether the statement is true or false
In a given office, the color printer breaks down with a probability of 20% in any month. A binomial process is assumed for a period of 10 months
(a) What is the probability that the printer breaks down exactly 2 times? (b) What is the probability that the printer breaks down at most 1 time? (c) What is the probability that the printer breaks down more than once?
The first step in marketing cost analysis is to reclassify all the dollar cost entries in the natural accounts into functional cost accounts.
Answer the following statement true (T) or false (F)