Which of the following ratio that gives an idea of company's ability to payback its short term liabilities with its short term assets? a. Current Ratio b. Return on Equity O c. Quick Ratio d. Gross profit ratio

Which of the following ratio that gives an idea of company's ability to payback its short term liabilities with its short term assets? a. Current Ratio b. Return on Equity O c. Quick Ratio d. Gross profit ratio

Foundations of Business (MindTap Course List)

6th Edition

ISBN:9781337386920

Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor

Publisher:William M. Pride, Robert J. Hughes, Jack R. Kapoor

Chapter15: Using Management And Accounting Information

Section: Chapter Questions

Problem 6DQ

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Concept explainers

Cash Outflow

The term "cash flow" basically means the flow of money in and out of business. The cash flow usually takes place from operational, investing, and financing activities. The cash flow normally denotes the amount of cash that is transferred either into the business as positive cash flows or out of business as expenses with regards to operating, investing, and financing activities.

Question

Which of the following ratio that
gives an idea of company's ability
to payback its short term liabilities
with its short term assets?
a. Current Ratio
b. Return on Equity
c. Quick Ratio
d. Gross profit ratio

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