The _____ Ratio Refers to the Ability of the Organization

question 112

Multiple Choice

The _____ ratio refers to the ability of the organization to meet its current debt obligation.

• A) activity
• B) liquidity
• C) profitability
• D) conversion
• E) growth

---

Definitions:

Performance Obligation

A promise in a contract to transfer a good or service to a customer, which is a fundamental concept in revenue recognition.

Non-distinct

Describes goods, services, or attributes that are not clearly separate or distinguishable from each other.

Separately Identifiable

A condition where an asset or component can be distinguished and divided from the whole, based on its unique characteristics and contributions to the operation.