You are considering an investment in Microsoft stock and wish to assess the firm's short-term debt-paying ability.All of the following ratios are used to assess liquidity except:
A)Debt to equity ratio.
B)Inventory turnover.
C)Quick ratio.
D)Accounts receivable turnover.

Question

Quizplus · Accepted Answer

The debt to equity ratio is a measure of a company's overall leverage, which is not a measure of short-term debt-paying ability. On the other hand, the quick ratio, inventory turnover, and accounts receivable turnover are all measures that assess a company's ability to meet its short-term obligations.

You Are Considering an Investment in Microsoft Stock and Wish