Which of the Ratios Listed Helps to Indicate Whether a Company

question 49

Multiple Choice

Which of the ratios listed helps to indicate whether a company has enough short-term assets to cover its short-term liabilities?

• A) Current ratio
• B) Profit margin
• C) Debt-to-equity
• D) Return on assets

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Definitions:

UCC

Stands for Uniform Commercial Code, a set of laws that govern commercial transactions in the United States.

Resale Profits

The earnings obtained from selling an asset or product for a price higher than the purchase cost.

Breach

The failure to fulfill the terms of a contract, agreement, or duty, which can lead to legal action for enforcement or damages.

Breach

The violation or non-fulfillment of a legal obligation, agreement, or duty.