Which of the Following Is a Stringent Measure of a Company's

question 27

Multiple Choice

Which of the following is a stringent measure of a company's ability to repay obligations in a short period of time?

• A)Return on total assets
• B)Current ratio
• C)Acid-test ratio
• D)Debt turnover

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Definitions:

Consumption

Refers to the use of goods and services by households.

Utils

An imaginary unit of measurement used in economics to represent the satisfaction or utility received from consuming goods and services.

Marginal Utility

An additional amount of satisfaction gained from consuming an extra unit of a good, highlighting the concept of diminishing returns.

Total Utility

The total satisfaction received from consuming a certain amount of goods or services.