Which of these ratios is not a measure of the ability of an entity to pay its debts?Group of answer choicesWorking capital ratio.All of the given options are measures of the ability of an entity to pay its debts.Quick ratio.Interest coverage ratio.

Which of the following ratios is considered a measure of a company’s ability to pay long-term debt?Group of answer choicesprice/earnings ratiotimes-interest-earned ratioacid-test ratioearnings per share of common stock

What type of ratio measures a company's ability to turn assets into cash to pay its short-term debts?Multiple choice question.performance ratioliquidity ratioleverage ratioactivity ratio

Multiple Choice QuestionWhat type of ratio measures the speed with which a company can turn its assets into cash in order to meet its debts?Multiple choice question.Leverage ratioProfitability ratioDebt utilization ratioLiquidity ratio

Which one of the following statements is true?Group of answer choicesLow debt ratio means most of the assets are financed by debt.Low debt ratio means most of the assets are financed by equity.Too little debt will reduce the business’s long-term flexibility.High debt ratio means most of the assets are financed by equity.

A debt to total assets ratio of 80%:Group of answer choicesmeans that 20% of investment in assets has been provided by lenders.is undesirable for creditors .is desirable for creditors.is likely to be supported by cyclical entities that have fluctuating profits, such as many high-tech companies. PreviousNext