Which Type of Financial Ratio Indicates Whether or Not the Organization

question 5

Multiple Choice

Which type of financial ratio indicates whether or not the organization is capable of paying off its short-term debts without having to sell its inventory?

• A) Quick ratio
• B) Current ratio
• C) Days sales outstanding ratio
• D) Inventory turnover ratio
• E) Profit ratio

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Definitions:

Wernicke's Area

A region of the brain that is important for language development and comprehension, located in the posterior section of the superior temporal gyrus of the dominant cerebral hemisphere.

Brain Damage

Injury or destruction of brain cells that impairs brain function, possibly resulting from trauma, disease, or other health conditions.

Prefrontal Cortex

The front part of the frontal lobes of the brain, crucial for complex cognitive behavior, personality expression, decision making, and moderating social behaviour.

Deficits

Situations where a shortfall exists, often referring to financial matters where expenses exceed revenue, but can also apply to other areas such as cognitive deficits in psychology.