Examlex
When considering an element's attributes in Application Modeller which of the following statements are true? (Choose all that apply.)
Current Ratio
This ratio indicates how well a business can settle its short-term debts with assets that are readily available.
Acid-test Ratio
A stringent indicator of a company’s short-term liquidity, calculated by dividing liquid assets by current liabilities, excluding inventory.
Debt-to-equity Ratio
The ratio that indicates the mix between shareholders' equity and debt in the capital structure used to finance assets.
Receivable Turnover
A financial metric that measures how efficiently a company collects on its accounts receivable, calculated as sales divided by accounts receivable.
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