Santos's executives are most interested in seeing the company's short-term solvency ratios.Based on this information,what question do they MOST likely want to have answered?
A) Can the company pay its immediate debts without obtaining further loans?
B) Does the company have enough inventory to meet sales demands?
C) How much inventory on hand does Santos have?
D) How much bonds payable debt is Santos carrying?
E) Is the company selling products at an appropriate price?

Question

Quizplus · Accepted Answer

A)Short-term solvency ratios indicate generally whether Santos has the assets necessary to pay its immediate debts on time. They don't, however, tell how much long-term debt, such as bonds payable, Santos may have (Choice D). They don't directly relate to inventory on hand (Choices B and C)or product pricing (Choice E).

Santos's Executives Are Most Interested in Seeing the Company's Short-Term