Which of the Following Financial Ratios Measures the Ability of the Organization

question 89

Multiple Choice

Which of the following financial ratios measures the ability of the organization to pay its short-term debts?

• A)leverage ratios
• B)liquidity ratios
• C)activity ratios
• D)profit ratios
• E)inventory turnover ratios

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Definitions:

Plasma Membrane

The semipermeable membrane surrounding the cytoplasm of a cell, responsible for controlling the passage of substances in and out.

Gray Matter

A major component of the central nervous system consisting of neuron cell bodies, dendrites, and unmyelinated axons, associated with processing and cognition.

Myelinated Axons

Nerve fibers covered with myelin, a protective sheath that enhances the speed and efficiency of electrical signal transmission in the nervous system.

Local Potential

Small changes in membrane potential that are crucial in the propagation of nerve impulses and can lead to an action potential if they reach a certain threshold.