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
Question
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
Solution
The type of ratio that measures a company's ability to turn assets into cash to pay its short-term debts is the liquidity ratio.
Similar Questions
ratios measure a company's ability to turn assets into cash to pay its short-term debt.
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.Profitability ratioDebt utilization ratioLiquidity ratioLeverage 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
Which ratio measures a company's ability to meet its long-term debt obligations?a.Acid-test ratiob.Current ratioc.Debt-to-equity ratiod.Return on equity ratio
What type of ratios measure the degree to which a firm relies on borrowed funds in its operations?Multiple choice question.performanceliquidityactivityleverage
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