A Company Poster Lists Instructions as to What to Do

question 29

Multiple Choice

A company poster lists instructions as to what to do in case of a fire alarm.This is an example of a(n) __________.

• A) policy
• B) directive
• C) operating plan
• D) procedure

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Definitions:

Liquidity Measures

Financial metrics used to determine how quickly a company can turn its assets into cash to meet short-term obligations. Common measures include current ratio and quick ratio.

Current Ratio

The Current Ratio is a liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year.

Quick Ratio

A liquidity measure that indicates a company's ability to cover its short-term liabilities with its most liquid assets.

Cash Ratio

A liquidity ratio that measures a company's ability to pay off its short-term liabilities with its cash and cash equivalents alone.