The Quick Ratio and the Number of Days' Sales in Receivables

question 164

Multiple Choice

The quick ratio and the number of days' sales in receivables measure:

• A) a company's ability to pay its long-term debts.
• B) a company's profitability.
• C) a company's liquidity.
• D) all of the above

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Definitions:

Trustee

A trustee is an individual or organization that holds and manages assets or property for the benefit of another party, under a trust agreement.

Real Estate

The land along with any permanent improvements attached to the land, whether natural or man-made, including water, trees, minerals, buildings, homes, fences, and bridges.

Incompetent

Lacking the necessary skills, capacities, or qualifications to perform a required task or duty effectively.

Sole Survivor

An individual who is the only person to emerge alive from a disaster, accident, or other event in which others have perished.