Which of the Following Ratios Is Least Useful in Evaluating

question 53

Multiple Choice

Which of the following ratios is least useful in evaluating a company's ability to pay its current obligations when they come due?

• A)current ratio
• B)quick ratio
• C)cash ratio
• D)return on assets ratio

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Definitions:

Unemployed

Individuals who are jobless, actively seeking work, and available to take up employment.

Structural Unemployment

Unemployment that results from industrial reorganization, typically due to technological change, rather than fluctuations in supply or demand.

Cyclical Unemployment

A type of unemployment that results from business cycle fluctuations in the economy, typically increasing during recessions and decreasing during expansions.

Unemployment

A situation where individuals who are capable of working and willing to work cannot find jobs.