Which of the following ratios is not a measure of a company's short-term debt paying ability?
A) accounts receivable turnover
B) cash ratio
C) current ratio
D) quick ratio

Question

Quizplus · Accepted Answer

Accounts receivable turnover is a measure of a company's ability to collect its accounts receivable, not a measure of its short-term debt paying ability. The cash ratio, current ratio, and quick ratio are all measures of a company's ability to pay off its short-term debt obligations.

Which of the Following Ratios Is Not a Measure of a Company's