Which type of financial ratio indicates whether or not the organization is capable of paying off its short-term debts without having to sell its inventory?
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 tells whether managers have the resources available to meet the claims of short-term creditors without selling inventory.

Which Type of Financial Ratio Indicates Whether or Not the Organization