Leon Is the Owner of a Corner Store

question 82

Multiple Choice

Leon is the owner of a corner store.Which ratio should he compute if he wants to know how long the store can pay its bills given its current level of cash and accounts receivable? Assume all receivables are collectible when due.

• A)Current ratio
• B)Debt ratio
• C)Cash coverage ratio
• D)Cash ratio
• E)Quick ratio

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