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What Type of Ratios Best Measure the Short-Term Ability of the Enterprise

question 198

Multiple Choice

What type of ratios best measure the short-term ability of the enterprise to pay its maturing obligations and to meet unexpected needs for cash?


Definitions:

Ratio

A statistic specifying the number of items in a class, or the sum of their values on a variable, per unit of some other class; a ratio is a total expressed in relative terms.

Total

The complete amount or sum of parts or units in a collection.

Distribution

In logic, the act of distributing terms across the components of a categorical syllogism; in mathematics, it refers to the distributive property involving multiplication and addition.

Median

A statistic specifying the middle value of the items in a class on a quantitative variable P.

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