Question

The ability of a company to collect receivables is measured by which ratio?     

	A.	Day's sales in receivables
	B.	Inventory turnover ratio
	C.	Current ratio
	D.	Acid-test ratio

The ability of a company to sell inventory is measured by which of the following ratios?     

	A.	Inventory turnover ratio
	B.	Current ratio
	C.	Day's sales in receivables
	D.	Acid-test ratio

A company's ability to pay liabilities with current assets is measured by which of the following ratios?     

	A.	Inventory turnover ratio
	B.	Acid-test ratio
	C.	Day's sales in receivables
	D.	Current ratio

All of the following measure a company's ability to pay current liabilities except;     

	A.	Current Ratio.
	B.	Working Capital.
	C.	Accounts Receivable Turnover.
	D.	Acid-Test Ratio.

All of the following measure a company's profitability except;     

	A.	Operating Income Percentage
	B.	Acid-Test Ratio
	C.	Rate of Return on Net Sales
	D.	Gross Profit Percentage

Answer 1

1. The ability of a company to collect receivables is measured by - Days sales in receivables.

2. The ability of a company to sell inventory is measured by - Inventory turnover ratio

3. A company's ability to pay Liabilities with current assets is measured by - Current ratio

4. All of the following measure a company's ability to pay current liabilities except - Accounts receivable turnover

5. All of the following measure a company's profitability except - Acid test ratio