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:

Chromosomes

Thread-like structures made of DNA molecules that contain the genes.

Excitatory

Referring to something that increases the likelihood of a nerve impulse in the neuron, often through neurotransmitters that promote action potentials.

Inhibitory

Characterized by or acting to restrain, hinder, or suppress physiological or psychological action.

Electrical

Pertaining to the technology of electricity; relating to, producing, or operated by electric currents or fields.