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:

Behaviors Increase

A rise in the frequency or intensity of actions or mannerisms.

Punishment

In operant conditioning, the process in which a behavior is followed by an aversive or unpleasant outcome that decreases the likelihood of a response.

Social Communication

The exchange of information and expressions between individuals through verbal and non-verbal means.

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired; a response that is at first elicited by the second stimulus is eventually elicited by the first stimulus alone.