Which of the following ratios is not an indicator of a company's short-term financial strength?
A)Quality of income.
B)Current ratio.
C)Cash ratio.
D)Quick ratio.

Question

Quizplus · Accepted Answer

Quality of income is not a ratio that directly measures a company's short-term financial strength. It evaluates the sustainability and reliability of a company's earnings over the long term. The other three ratios listed (current ratio, cash ratio, and quick ratio) are all indicators of a company's short-term financial strength.

Which of the Following Ratios Is Not an Indicator of a Company's