Answered: A company’s ability to pay its…

A company’s ability to pay its short-term obligations is assessed using which financial ratio?a) Debt-to-Equity Ratiob) Current Ratioc) Return on Equity (ROE)d) Gross Profit Margin

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 19MCQ

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Question

A company’s ability to pay its short-term obligations is assessed using which financial ratio?
a) Debt-to-Equity Ratio
b) Current Ratio
c) Return on Equity (ROE)
d) Gross Profit Margin

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Financial Accounting mcq type Question
Pay its Short term obligations?
The debt to assets ratio measures the proportion of interest paid relative to dividends paid. the company's profitability. O whether interest can be paid on debt in the current year. O the percentage of the total assets provided by creditors.