Some of the Ratios That Are Used to Determine a Company's

question 1

Multiple Choice

Some of the ratios that are used to determine a company's short-term debt paying ability are

• A)asset turnover, times interest earned, current ratio, and receivables turnover.
• B)times interest earned, inventory turnover, current ratio, and receivables turnover.
• C)times interest earned, current ratio, and inventory turnover.
• D)current ratio, receivables turnover, and inventory turnover.

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Definitions:

Labor Productivity

The measure of the economic output produced per unit of labor input.

U.S.

A country consisting of 50 states, a federal district, and various territories, known formally as the United States of America.

People's Republic Of China

A country in East Asia, the world's most populous nation, governed by the Communist Party of China.

Marginal Product

The increase in output that results from employing an additional unit of a factor of production, ceteris paribus.