Which ratio measures a company's ability to pay its short-term obligations? a) Debt-to-equity ratio b) Return on assets c) Current ratio d) Gross profit margin

Financial Accounting mcq type Question

Which of the following ratios is used by the company to determine its ability to pay currently maturing obligations? a. Cash Ration b. Interest Coverage Ratio c. Equity Ratio d. Accounts Receivable turnover

Which of the following ratios best measures the profitability of a company?    a) Return on equity b) Gross margin c) Current ratio d) Net operating asset turnover

A ratio that measures a company’s profitability is thea. leverage ratio.b. gross margin percentage.c. current ratio.d. times-interest-earned ratio.

Which of the following financial measures are used to determine a company's credit rating?   a)A company's current ratio, quick ratio, inventory turnover ratio, and default risk ratio b) Its ratio of annual interest payments to net profits, current ratio, working capital ratio, debt-equity ratio, and percentage return on capital employed  c) Its loans outstanding as a percentage of total revenues, default risk ratio, inventory turnover ratio, and long-term debt-to-equity ratio d) Its total debt-equity ratio, current ratio, working capital ratio, and ratio of prior-year cash flow from operations to prior-year interest payments e) The percentage by which prior-year cash flow from operations covers a company's prior-year interest payments, the company's debt-asset ratio, its dividend payout ratio, and its default risk ratio

Profit volume ratio is similar to which of the following ratios? Debtors' turnover ratio Operating Ratio Current ratio Net profit ratio

Which of the following ratios is used to analyze a company's liquidity? a. Inventory turnover ratio b. Earnings per share c. Return on assets ratio d. Asset turnover ratio

What financial metric measures a company's ability to cover its short-term obligations with its most liquid assets and is calculated by excluding inventory from the current assets? A. Quick ratio B. Current ratio C. Inventory turnover ratio D. Return on assets ratio

Long-term solvency is indicated by a. Current ratio b. Debt/equity ratio c. Operating ratio d. Net profit ratio