The financial ratio that indicates whether or not the organization is capable of paying off its short-term debts without having to sell its inventory is the _____________ ratio.
A) quick
B) current
C) days sales outstanding
D) inventory turnover
E) profit

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.

The Financial Ratio That Indicates Whether or Not the Organization