Which of These Ratios Is Not Directly Relevant to the Evaluation

question 15

Multiple Choice

Which of these ratios is not directly relevant to the evaluation of a company's short-term liquidity position?

• A) current ratio
• B) net profit ratio
• C) quick ratio
• D) acid test ratio

---

Definitions:

Moral Hazard

The situation where one party is more likely to take risks because they do not bear the full consequences of their actions, often occurring in insurance and finance.

Health Insurance

A form of insurance coverage that pays for medical and surgical expenses incurred by the insured or provides reimbursement for such expenses.

Medical Malpractice

A legal term referring to professional negligence by a healthcare provider that results in injury or harm to a patient.

Pain And Suffering

A legal concept referring to the compensation awarded to individuals for physical or emotional distress resulting from an injury.