Directions: Choose the Best Answer Based on the Information You

question 19

Multiple Choice

Directions: Choose the best answer based on the information you read in Chapter One. ​ ​ When reading to identify the writer's knowledge about the topic, the reading trait being used is

• A)ideas
• B)organization
• C)voice
• D)word choice

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Definitions:

Quick Ratio

A liquidity metric that indicates a company's capacity to pay its current liabilities without needing to sell inventory, calculated as (cash + marketable securities + accounts receivable) / current liabilities.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within a year or within the business's operating cycle.

Current Liabilities

Obligations or debts that a company must pay within a year.

Inventory

The goods and materials a business holds for the ultimate goal of resale or repair.