Which of the Following Ratios Is a Measure of the Firm's

question 99

Multiple Choice

Which of the following ratios is a measure of the firm's ability to pay its current liabilities once inventory is subtracted from current assets?

• A) the acid-test ratio
• B) the net margin ratio
• C) the profitability ratio
• D) the inventory ratio

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Definitions:

Shopping Products

Items for which the consumer compares several alternatives on criteria such as price, quality, or style.

Inexpensive

Not costing a lot of money; affordable.

Limited Availability

The condition of being available to consumers or users in restricted quantities or for a short time.