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

question 44

Multiple Choice

Which of the following ratios is a measure of a company's ability to pay liabilities with current assets?

• A)The days' sales in receivables
• B)The price/earnings ratio
• C)The inventory turnover ratio
• D)The current ratio

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Definitions:

International Companies

Businesses that operate across national borders, engaging in international trade or services.

U.S. Standards

Refers to the guidelines, principles, and procedures established in the United States for various activities, including accounting, manufacturing, and other industries.

GAAP

The standardized guidelines for accounting and financial reporting, providing transparency and consistency across financial statements and industries.

FASB

Financial Accounting Standards Board, an independent organization responsible for establishing accounting and financial reporting standards.