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

---

Definitions:

Ordinal Utility Functions

A representation of a consumer's preference ranking for different bundles of goods, without specifying the exact level of satisfaction.

Basic Assumptions

Foundational beliefs or principles that are accepted as true without proof, forming the basis of further argument or reasoning.

Indifference Curve

A graph showing different combinations of two goods that provide equal satisfaction and utility to a consumer.

Marginal Rates of Substitution

The speed at which a buyer is prepared to sacrifice one item for another while keeping their satisfaction constant.