A Measure of the Ability of an Entity to Pay

question 157

Multiple Choice

A measure of the ability of an entity to pay all of its current liabilities if they come due immediately is the:

• A) debt ratio.
• B) quick ratio.
• C) liquidity ratio.
• D) accounts receivable turnover.

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Definitions:

Delta Secondary

A configuration for the secondary winding of a transformer where the ends of the coils are connected to form a triangle-like circuit, allowing it to supply both three-phase and single-phase load currents.

Center-Tapped Transformer

A transformer that has a wire connected to the electric midpoint of its winding. Generally, the secondary winding is tapped.

High Leg

A certain type of three-phase power connection that exhibits a higher voltage on one leg when measured to ground than on the other legs.

Output Power

The amount of power, typically measured in watts, that a device, system, or process delivers to its load.