Question

Which financial ratio is used to assess a company’s

Q: Answer-Which financial ratio is used to assess a company’s ability to cover its short-term liabilities usin...

The Quick Ratio Acid-Test Ratio measures a companys ability to meet short-term obligations using only highly liquid assets excluding inventory. It is calculated as Quick Ratio Current Assets - Inventory Current Liabilities.

ability to cover its short-term liabilities using only its most liquid assets?

A Current Ratio

B Quick Ratio

C Debt-to-Equity Ratio

D Interest Coverage Ratio

E Return on Capital Employed

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PNB SO Credit Officer Scale 1

Which financial ratio is used to assess a company’s

Solution

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