Which of the Following Is Considered to Be a More

question 11

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:

CEO

Chief Executive Officer, the highest-ranking person in a company or organization, responsible for overall management.

Sales Budget

One of the major elements of the income statement budget that indicates the quantity of estimated sales and the expected unit selling price.

Production Budget

A budget of estimated units to be manufactured to meet budgeted sales and desired inventory levels.

Capital Expenditures Budget

A plan for a company’s spending on fixed assets, such as equipment or property, that will be used over a long period.