A Supplier,who Requires Payment This Week,should Be Most Concerned About

question 16

Multiple Choice

A supplier,who requires payment this week,should be most concerned about which one of its customer's ratios?

• A)Current ratio
• B)Debt-equity ratio
• C)Cash ratio
• D)Quick ratio
• E)Total debt ratio

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Definitions:

Contra Asset Accounts

Accounts on a balance sheet that have a credit balance and are used to offset the debit balances in related asset accounts, such as accumulated depreciation.

Total Amount

The cumulative sum or aggregate of all quantities or figures considered, often referring to the final sum of a series of transactions or the overall value of financial accounts.

Share Capital

The funds raised by a company through the issuance of shares, representing the amount that shareholders have invested directly in the company.

Dollar Amount

The value of an item, transaction, or financial figure expressed in units of currency.