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Words Such as If, When, Because, and as Often Introduce

question 8

Multiple Choice

Words such as if, when, because, and as often introduce ____.


Definitions:

Acid-Test Ratio

A financial metric that measures a company's ability to pay off its current liabilities with its quick assets (cash, marketable securities, and accounts receivable) without relying on inventory sales.

Current Ratio

This ratio evaluates a corporation's potential to meet its immediate financial obligations, by dividing the total of current assets by the total of current liabilities.

Acid-Test Ratio

A financial metric that measures a company's ability to pay off its current liabilities with its most liquid assets.

Average Collection Period

The average number of days it takes for a business to receive payments owed by its customers.

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