Which of the Following Would Be Useful in Determining Whether

question 13

Multiple Choice

Which of the following would be useful in determining whether a company can pay its current liabilities?

• A)Quick ratio
• B)Current ratio
• C)Debt ratio
• D)Both A and B

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Definitions:

Fixed Supply

A situation where the quantity of a particular good, service, or resource does not change regardless of price changes.

Farmland

Farmland refers to any agricultural land dedicated to the cultivation of crops or the breeding of livestock, essential for food production and rural livelihoods.

Technological Advances

Innovations and improvements in technology that enhance productivity, efficiency, and can lead to new products or processes.

Output Effect

The possibility that when the price of the first of a pair of substitute resources falls, the quantity demanded of both resources will rise because the reduction in the price of the first resource so greatly reduces production costs that the volume of output created with the two resources increases by so much that the quantity demanded of the second resource increases even after accounting for the substitution effect.