Asked by
Tayseer Afifi
on Nov 08, 2024
Verified
Which one of the following measures indicates how long a firm can continue operating without any additional cash inflows?
A) Current ratio
B) Cash ratio
C) Quick ratio
D) Interval measure
E) Total debt ratio
Current Ratio
A ratio that determines a company's capacity to fulfill immediate financial commitments using its present assets.
Total Debt Ratio
A financial metric that compares the total debt of a company to its total assets, indicating the leverage and financial risk of the company.
- Examine an enterprise's capability to satisfy near-term financial responsibilities and continue operations absent of further cash infusions.
Verified Answer
ME
Learning Objectives
- Examine an enterprise's capability to satisfy near-term financial responsibilities and continue operations absent of further cash infusions.