What Two Measures Tell Management and Short-Term Creditors If the Firm

question 94

Multiple Choice

What two measures tell management and short-term creditors if the firm has sufficient capital and can pay its debts?

• A) Working Capital Ratio
• B) Current Ratio
• C) Organizational Ratio
• D) A & B

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Definitions:

Kiliani-Fischer

A chemical synthesis method used to elongate the carbon chain of sugars.

Aldohexoses

A class of monosaccharides that contain six carbon atoms and an aldehyde functional group.

Epimeric

Describes diastereomers that differ in configuration at only one stereogenic center.

D-Aldopentose

A five-carbon sugar (pentose) with an aldehyde group, distinguished by its orientation in the Fischer projection that matches the D-family of sugars.