Which of the Following Measures a Company's Ability to Pay

question 99

Multiple Choice

Which of the following measures a company's ability to pay current liabilities with current assets?

• A)Debt ratio
• B)Profit
• C)Total assets
• D)Current ratio

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Definitions:

Consumer Surplus

The difference in the total amount that customers are ready and financially able to invest in a good or service and the amount they truly pay.

Producer Surpluses

The difference between what producers are willing to sell their goods for and the actual price they receive.

Creative Destruction

A concept in economics implying the dismantling of long-standing practices in order to make way for innovation and advancement.

Government Regulation

Government Regulation involves the imposition of rules by government authorities to control or manage market activities, with the aim of protecting public interest.