Podcast
Questions and Answers
Which ratio measures a company's ability to pay off short-term liabilities with current assets?
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?
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?
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?
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?
Which ratios measure a company's ability to repay both short- and long-term obligations?
Which ratios measure a company's ability to repay both short- and long-term obligations?
Flashcards
Current Ratio
Current Ratio
Measures ability to pay off short-term liabilities with current assets.
Acid-Test Ratio
Acid-Test Ratio
Measures ability to pay off short-term liabilities with quick assets.
Cash Ratio
Cash Ratio
Measures ability to pay off short-term liabilities with cash and cash equivalents.
Operating Cash Flow Ratio
Operating Cash Flow Ratio
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Liability Repayment Ratios
Liability Repayment Ratios
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