This Type of Ratio Is Used to Determine If a Company

question 28

Multiple Choice

This type of ratio is used to determine if a company has the resources available to meet the claims of short-term creditors:

• A)ROI
• B)day sales outstanding
• C)quick ratio
• D)inventory turnover
• E)current ratio

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Definitions:

Preparing

The act of making ready or being made ready for use or consideration, involving planning and arrangement.

Summarizing

Summarizing involves condensing the main ideas or points of a discussion, document, or presentation into a brief synopsis.

Rehearsing

The act of practicing or going over material, actions, or presentations beforehand to ensure a smooth performance.

Warning Signals

Indications or alerts that suggest a potential problem, danger, or the need for action.