Which of the Following Classification of Ratios Reflects the Speed

question 103

Multiple Choice

Which of the following classification of ratios reflects the speed with which resources are converted to cash or sales?

• A) leverage
• B) equity
• C) activity
• D) profitability

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Definitions:

Legal Tender

Officially recognized currency that can be used to settle public and private debts within a country.

Repudiation

An indication by one party to the other that there will be a failure to honour the contract (the expression of which can be expressed or implied).

Condition Breached

When a specific condition or term in a contract is violated or not fulfilled as agreed.

Damages

Financial compensation awarded by a court to a party who has suffered loss or injury due to the actions or negligence of another party.