(Cash + Marketable Securities + Accounts Receivable) ∕ Current Liabilities

question 15

Multiple Choice

(Cash + Marketable securities + Accounts receivable) ∕ Current liabilities

• A) Current ratio
• B) Quick ratio
• C) Average payment period
• D) Fast ratio

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Definitions:

Credit Ratings

Assessments of the creditworthiness of both borrowers (including governments, businesses, and individuals) and financial instruments, expressed through a grading system.

Callable

Describes a financial security (like a bond) that can be redeemed or "called" by the issuer before its maturity date, usually at a predefined price.

Convertible

Refers to a security (like bonds or preferred shares) that can be converted into a different form, commonly shares of the company's common stock.

Secured

Refers to loans or debt that are backed by collateral, reducing the risk for lenders.