A Measure of the Ability of an Entity to Pay

question 56

Multiple Choice

A measure of the ability of an entity to pay all of its current liabilities if they come due immediately is the:

• A)current ratio.
• B)quick ratio.
• C)liquidity ratio.
• D)accounts receivable turnover.

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Definitions:

Microsystem

A concept in ecology and environmental science referring to the smallest unit of a habitat where organisms interact with each other and their environment.

Heritage

The traditions, practices, and beliefs handed down from previous generations, often forming part of a person's cultural identity.

Ethnic Group

A group of people or population united by shared cultural heritage or ancestry.

Racial Group

A category of people who share distinctive physical traits and are considered a single group by society.