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:

Self-Managing Team

A group in which members work autonomously to complete tasks and make decisions without the traditional hierarchy of management.

Authority

The power or right to give orders, make decisions, and enforce obedience, often associated with a specific position or role within an organization or society.

Inequality

The state or condition of not being equal, especially regarding status, rights, and opportunities.

Cross-Functional Team

A group of workers from different units with various areas of expertise, assembled to address certain issues.