The Quick Ratio Is Also Known as the

question 44

Multiple Choice

The quick ratio is also known as the

• A)key profitability ratio.
• B)acid test.
• C)EPS.
• D)asset turnover.
• E)key activity ratio.

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Definitions:

Cash Budget

A schedule showing cash flows (receipts, disbursements, and cash balances) for a firm over a specified period.

Quick Ratios

A measure of a company's ability to meet its short-term obligations with its most liquid assets, providing insights into financial health.

Debt Management Ratios

Financial ratios that indicate the degree to which a company is financed by debt and its ability to repay it.

Financial Leverage

The use of borrowed funds to increase the potential return of an investment.