The ________ Ratio Measures the Ability of a Company to Pay

question 80

Multiple Choice

The ________ ratio measures the ability of a company to pay all current liabilities if they came due immediately.

• A)inventory turnover
• B)current
• C)day's sales in receivables
• D)acid-test

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Definitions:

Inventory

The total amount of goods or materials a business has in stock at any given time.

Costs and Profitability

Examines the relationship between an organization's expenses and its ability to generate profit, essential for financial management and planning.

Logistics Perspective

An approach focusing on the effective management of the flow of goods, information, and resources from the point of origin to the point of consumption to meet customer requirements.