Which One of the Following Ratios Would Not Likely Be

question 130

Multiple Choice

Which one of the following ratios would not likely be used by a short-term creditor in evaluating whether to sell on credit to a company?

• A) Current ratio
• B) Acid-test ratio
• C) Asset turnover
• D) Receivables turnover

---

Definitions:

Competence

The ability to do something successfully or efficiently, often referring to a specific skill set or knowledge.

Contingency Approach

A management theory that suggests the optimal course of action depends on specific internal and external situations, advocating for flexibility and adaptation in strategies.

Situational Forces

External or internal factors that influence individuals' behavior or the outcome of events within an organizational or social context.

Universal Managerial Principles

Fundamental guidelines or rules that are believed to be applicable across diverse organizations and management situations.