A short-term creditor would be interested in A. profitability ratio. B. efficiency ratio. C. liquidity ratio. D. leverage ratio. 13. 14. The quick ratio of a firm would be unaffected by which of the following? A Land held for investment is sold for cash. B. Equipment is purchased, financed by a long-term debt issue. C. Inventories are sold for cash. D. Inventories are sold on a credit basis.

Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
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Chapter5: Risk Analysis
Section: Chapter Questions
Problem 9QE
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13.
A short-term creditor would be interested in
A. profitability ratio.
B. efficiency ratio.
C. liquidity ratio.
D. leverage ratio.
The quick ratio of a firm would be unaffected by which of the following?
14.
A. Land held for investment is sold for cash.
B. Equipment is purchased, financed by a long-term debt issue.
C. Inventories are sold for cash
D. Inventories are sold on a credit basis.
Transcribed Image Text:13. A short-term creditor would be interested in A. profitability ratio. B. efficiency ratio. C. liquidity ratio. D. leverage ratio. The quick ratio of a firm would be unaffected by which of the following? 14. A. Land held for investment is sold for cash. B. Equipment is purchased, financed by a long-term debt issue. C. Inventories are sold for cash D. Inventories are sold on a credit basis.
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