Questions
MGS*2030*08.2025FA POM TEST #2 Chapters 7,8,10,11,12- Requires Respondus LockDown Browser
Single choice
_______ ratios measure the ability of an organization to pay its short-term debts.
Options
A.Activity
B.Inventory turnover
C.Profit
D.Liquidity
E.Leverage
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Step-by-Step Analysis
The question asks: '_______ ratios measure the ability of an organization to pay its short-term debts.'
Option 1: Activity. Activity ratios assess how efficiently a company uses its assets to generate revenue or how well it manages its operations (for example, asset turnover). They do not specifically measure short-term debt-paying ability, so th......Login to view full explanationLog in for full answers
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