The Ratios That Are Used to Determine a Company's Short-Term

question 33

Multiple Choice

The ratios that are used to determine a company's short-term debt paying ability are

• A) asset turnover, times interest earned, current ratio, and account receivable turnover.
• B) times interest earned, inventory turnover, current ratio, and accounts receivable turnover.
• C) times interest earned, quick ratio, current ratio, and inventory turnover.
• D) current ratio, quick ratio, accounts receivable turnover, and inventory turnover.

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Definitions:

Non-Member Manager

A manager in a limited liability company (LLC) who is not an owner or member of the LLC.

Personal Liability

the legal responsibility of an individual to settle debts or fulfill obligations from their own assets.

Fraud

An intentional deception made for personal gain or to damage another individual.

Masonry LLC

A limited liability company specializing in the trade of working with bricks, stone, concrete, and other similar construction materials.