Which of the Following Ratios Is Not an Indicator of a Company's

question 121

Multiple Choice

Which of the following ratios is not an indicator of a company's short-term financial strength?

• A)Earnings quality.
• B)Current ratio.
• C)Cash ratio.
• D)Quick ratio.

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Definitions:

Expected Income

The amount of money one anticipates earning over a certain period, factoring in various possible outcomes.

Expected Utility

A theory in economics that calculates the utility of an individual or entity based on the likelihood of different outcomes, combining both the value of outcomes and their probabilities.

Utility

A measure of satisfaction or happiness that consumers receive from consuming goods or services.

Income

The money that an individual or business receives in exchange for providing a good or service or through investing capital.