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

question 69

Multiple Choice

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

• A)The current ratio
• B)The price/earnings ratio
• C)The inventory turnover ratio
• D)The day's sales in receivables

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Definitions:

Unfair Business Practices

Actions undertaken by businesses that are deceptive, misleading, or unethical, often to gain an advantage over consumers or competitors.

Penalties

Fines or other forms of punishment imposed on individuals or organizations for breaking laws or regulations.

Sale Of Goods Act

Legislation that regulates the sale of goods, ensuring certain standards of quality and fitness for purpose among other sales rights and duties.

Consumer Protection Legislation

Laws and regulations designed to ensure the rights of consumers are protected and to promote fair trade, competition, and accurate information in the marketplace.