The ability of an entity to maintain its short-term, debt-paying ability is important to all users of financial statements.
举一反三
- Which of the following statements is correct ? (1) The strength of the parts indicates the ability of that to resist damage. (2) The stiffness of the parts indicates the ability of that to resist deformation. (3) The stability of the parts indicates the ability of that to maintain its original equilibrium form. (4) The higher the strength, stiffness and stability of the parts are, the better.
- The current ratio is used to evaluate a firm's ability to pay its short-term debts.
- The financial ratios that measure a firm's ability to pay its short-term debts are called A: leverage ratios. B: liquidity ratios. C: equity ratios. D: profitability ratios.
- Typically, which of the following would be considered to be the most indicative of a firm's short-term debt paying ability? A: working capital B: current ratio C: acid test D: cash ratio E: days' sales in receivables
- Which of the following ratios and rates that measure debt-paying ability focuses on the long-term position of a company? A: Quick ratio B: Inventory turnover C: Current ratio D: Debt ratio