Which of the Following Types of Financial Ratios Measures the Ability

question 47

Multiple Choice

Which of the following types of 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:

Criminal Defendant

An individual or entity accused of committing a criminal act and facing legal proceedings in a court of law.

Reasonable Suspicion

A standard in law enforcement that allows for the brief detention and investigation of individuals based on specific and articulable facts suggesting criminal activity.

Probable Cause

A reasonable basis for believing that a crime may have been committed, justifying further investigation or the issuance of a warrant.

Tort

A civil wrong that causes a claimant to suffer loss or harm, leading to legal liability for the person who commits the tortious act.