Question: 1. Which ratio best reflects a company's ability to meet immediate interest payments?
(a) Debt ratio.
(b) Equity ratio.
(c) Times interest earned.
2. 1. Which two short-term liquidity ratios measure how frequently a company collects its accounts?
2. What measure reflects the difference between current assets and current liabilities?
3. Which two ratios are key components in measuring a company's operating efficiency? Which ratio summarizes these two components?