What type of ratio measures a firm's ability to generate cash to meet current obligations by selling inventory and collecting revenue?

A) Earnings per share
B) Debt
C) Revenue recognition
D) Current
E) Activity


Answer: D
Explanation: D) This ratio measures a firm's ability to generate cash to meet current obligations through the normal, orderly process of selling inventories and collecting revenues from customers. It is calculated by dividing current assets by current liabilities.

Business

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A. Postdating the negotiability of an instrument B. Antedating the negotiability of an instrument C. Using phrases such as "please pay" or "pay to the order of" D. Conditioning payment on the payee's performance

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Answer the following statement true (T) or false (F)

Business