A Company Uses Current Ratio to Analyze Its Financial Position

question 19

Multiple Choice

A company uses current ratio to analyze its financial position.Which one of the following types of information can be obtained from current ratio?

• A)efficiency of inventory management
• B)productivity of the company's assets
• C)information on the short-term solvency
• D)information on the total debt of the company
• E)information on financial leverage

---

Definitions:

Suit

A legal action taken by one party against another in a court of law.

Lakefront Property

Real estate located directly on the edge of a lake, often highly valued for its scenic views and access to water-based activities.

Specific Performance

A legal remedy requiring a party to perform a specific act, typically fulfilling a contract.

Fail to Close

A situation where a transaction or deal does not complete by the specified or agreed upon time.