Which Measure(s) Is(are) an Evaluation of a Company's Ability to Pay

question 210

Multiple Choice

Which measure(s) is(are) an evaluation of a company's ability to pay current liabilities?
1) Current cash debt coverage ratio.
2) Current ratio.

• A) 1 only.
• B) 2 only.
• C) Both 1 and 2.
• D) Neither 1 nor 2.

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Definitions:

Learning And Growth

A perspective within the Balanced Scorecard approach focusing on employee training and development, for the purpose of improving internal processes and innovation.

Profit Center

A division or segment of a company that is responsible for generating its own revenue and profit, with its financial performance being identifiable separately from other business activities.

Generating Revenue

The process of earning income from business activities, sales, or other financial operations.

Financial Measures

Quantitative indicators used to assess a company's financial performance, including net income, return on investment, and earnings per share.