Which Ratio Tells Whether a Company Has Sufficient Assets to Convert

question 19

Multiple Choice

Which ratio tells whether a company has sufficient assets to convert into cash to pay off its debts?

• A)Current
• B)Quick
• C)Inventory turnover
• D)Conversion
• E)Gross margin

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Definitions:

Merger Clause

A contract clause providing that the written contract is the complete expression of the parties’ agreement. Also called integration clause.

Integration Clause

A provision in a contract that declares it to be the complete and final agreement between the parties, superseding all prior discussions or agreements.

Statute of Frauds

A legal principle requiring certain types of contracts to be executed in writing and signed by all parties to be enforceable.

Real Estate

Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature.