Which of the Following Is Considered to Be a More

question 149

Multiple Choice

Which of the following is considered to be a more stringent measure of a company's ability to pay its current liabilities than the current ratio?

• A)Accounts payable
• B)Quick ratio
• C)Liquidity ratio
• D)Collection period

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Definitions:

Common Stock

A type of equity security that represents ownership in a corporation, giving holders voting rights and a share in the company's profits via dividends.

Subscriptions Receivable-Common Stock

An account that represents amounts due from subscribers who have agreed to purchase common stock of a company but have not yet paid.

Common Stock

Constitutes a type of equity security that represents ownership in a corporation, giving holders voting rights and a share in the company's profits through dividends.

Stock Subscription Plan

A method through which a company offers its shares to investors or employees ahead of the general public, often at a discount or with preferential terms.