An Important Measure of a Firm's Ability to Pay Its

question 34

Multiple Choice

An important measure of a firm's ability to pay its current liabilities quickly is the _____.

• A) return on sales ratio
• B) acid-test ratio
• C) calculation of cost of goods sold
• D) earnings per share
• E) debt-to-equity ratio

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Definitions:

Pathways

Refers to the routes or courses of action that can be taken in order to achieve a specific goal or outcome.

Opportunity Identification

The process of finding new prospects or possibilities for business and economic growth.

Effectuating Opportunities

involves the process of making opportunities come to life, often by using what is available and adapting to emerging contingencies in entrepreneurial ventures.

Unique

Being the only one of its kind; unlike anything else.