All of the following measure a company's ability to pay current liabilities except
A)Accounts Receivable Turnover.
B)Current Ratio.
C)Working Capital.
D)Acid-Test Ratio.

Question

Quizplus · Accepted Answer

Accounts Receivable Turnover measures how quickly a company collects cash from its customers, which is not directly related to its ability to pay current liabilities. The other options, Current Ratio, Working Capital and Acid-Test Ratio, all measure a company's liquidity and ability to pay its current liabilities.

All of the Following Measure a Company's Ability to Pay