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:

Measure of Damages

A method used in legal contexts to calculate the amount of compensation owed to a party as a result of loss or injury.

United Nations Convention

An international treaty or agreement formulated under the auspices of the United Nations, pertaining to various global issues.

International Sales Contract

A legally binding agreement between parties from different countries for the sale and purchase of goods.

Market Price

The present cost at which a service or asset is available for purchase or sale on the market.