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Liquidity Ratio Quiz
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Liquidity Ratio Quiz

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@LuminousLion

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Questions and Answers

Which ratio measures a company's ability to pay off short-term liabilities with current assets?

  • Current ratio (correct)
  • Cash ratio
  • Operating cash flow ratio
  • Acid-test ratio
  • Which ratio measures a company's ability to pay off short-term liabilities with quick assets?

  • Cash ratio
  • Operating cash flow ratio
  • Acid-test ratio (correct)
  • Current ratio
  • Which ratio measures a company's ability to pay off short-term liabilities with cash and cash equivalents?

  • Operating cash flow ratio
  • Acid-test ratio
  • Current ratio
  • Cash ratio (correct)
  • Which ratio is a measure of the number of times a company can pay off current liabilities with the cash generated in a given period?

    <p>Operating cash flow ratio</p> Signup and view all the answers

    Which ratios measure a company's ability to repay both short- and long-term obligations?

    <p>Current ratio and acid-test ratio</p> Signup and view all the answers

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