Which one of the following ratios is a test of a company's short-term debt-paying ability?

A) profit margin
B) price/earnings
C) acid-test
D) times interest earned

Short-Term Debt-Paying

Refers to a company's ability to meet its short-term financial liabilities and obligations.

Acid-Test

A stringent financial ratio that measures the ability of a company to pay off its current liabilities with its most liquid assets (cash, marketable securities, and accounts receivable).