All of the following are measures of a company's short-term debt-paying ability except:
A)Current ratio.
B)Earnings per share.
C)Inventory turnover.
D)Average collection period.

Question

Quizplus · Accepted Answer

Earnings per share is not a measure of a company's short-term debt-paying ability. It is a measure of a company's profitability and represents the amount of earnings that can be attributed to each share of common stock. The other three choices, current ratio, inventory turnover, and average collection period, are all measures of a company's ability to pay off short-term debts.

All of the Following Are Measures of a Company's Short-Term