Directions: Choose the Best Answer Based on the Information You

question 7

Multiple Choice

Directions: Choose the best answer based on the information you read in Chapter 22. ​ Though she was born and raised in New York, Katrina moved _____ the South a few years ago.

• A)to
• B)in
• C)of
• D)at ​

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Definitions:

Cash Ratio

A liquidity ratio that measures a company's ability to pay off short-term liabilities with cash and cash equivalents alone, without selling or liquidating other assets.

Cash Equivalents

Short-term, highly liquid investments that are readily convertible to known amounts of cash and have original maturities of three months or less.

Current Liabilities

Short-term financial obligations that are due within one year or within the normal operating cycle of the business, whichever is longer.

Debt-Equity Ratio

This ratio, a test of financial leverage, divides a company's liabilities by its stockholders' equity.