The Ratio That Tells Whether the Entity Can Pay All

question 79

Multiple Choice

The ratio that tells whether the entity can pay all its current liabilities if they come due immediately is the:

• A)acid-test ratio.
• B)accounts receivable turnover.
• C)inventory turnover.
• D)earnings per share.

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Definitions:

Small Tolerances

Specifications that allow for very limited variations in size, weight, or other dimensions in manufacturing or engineering.

Produce

To create, manufacture, or cultivate goods, products, or crops.

Measure

A quantitative or qualitative assessment tool used for determining the size, amount, or degree of an object or phenomenon.

Deming's Fourteen Principles

A set of management practices introduced by W. Edwards Deming to promote quality, productivity, and competitive position.