Which type of financial ratio indicates whether or not the organization is capable of paying off its short-term debts without having to sell any of its inventories?
A)Quick ratio
B)Current ratio
C)Days sales outstanding ratio
D)Inventory turnover ratio
E)Profit ratio

Question

Quizplus · Accepted Answer

The quick ratio shows whether they can pay these claims without selling inventory.

Which Type of Financial Ratio Indicates Whether or Not the Organization