A Measure of the Ability of an Entity to Pay

question 39

Multiple Choice

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

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

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Definitions:

Workplace Criticism

Workplace criticism involves giving feedback or evaluations about an individual's performance or behavior in a professional setting, often aimed at improvement.

Professional Behavior

Conduct that is considered acceptable and appropriate in a workplace or professional setting.

Reliable

Capable of being trusted or depended upon; consistently good in quality or performance.

Diligent

Showing careful and persistent work or effort in one's duties or tasks.