Engineering Economics
The more critical (or severe) test of the firm's liquidity can be judged by:

Acid-Test (or Quick) ratio
Debts ratio
Current ratio
Liquidity ratio

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Engineering Economics
Current ratio is:

(Current assets + loans)/Current liabilities
Current assets/Current liabilities
(Current assets + loans advances)/Current liabilities
None of these

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Engineering Economics
Which one of the following definitions is correct?

All of these
The ratio of total debt to share holder's equity is called 'debt ratio'
The ratio of earnings before interest and taxes for a particular reporting period to the amount of interest charges for the period is called interest coverage ratio
The ratio debt-to-total assets is called Debt-to-total assets ratio

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