Which Measure(s) Is(are) an Evaluation of a Company’s Ability to Pay

question 19

Multiple Choice

Which measure(s) is(are) an evaluation of a company’s ability to pay current liabilities?
1. Current ratio.
2. Free cash flow

• A)Both 1 and 2.
• B)Neither 1 nor 2.
• C)1 only.
• D)2 only

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Definitions:

Immigrant Workers

Immigrant workers are individuals who have moved from one country to another for the purpose of employment.

Substitute Resources

Productive inputs that can be used instead of other inputs in the production process; resources for which an increase in the price of one leads to an increase in the demand for the other.

Complementary Resources

Productive inputs that are used jointly with other inputs in the production process; resources for which a decrease in the price of one leads to an increase in the demand for the other.

Backflows

In a systems context, refers to the reverse flow of a liquid, gas, or other substance, counter to the intended or normal direction, which can create issues such as contamination.