ACCOUNTING 333 CHAPTER 3 PRACTICE QUIZ.
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ACCOUNTING 333 CHAPTER 3 
PRACTICE QUIZ. 
Financial ratios that measure a firm's ability to pay its bills over the short run without undue stress 
are often referred to as: 
o asset management ratios. 
o liquidity measures. 
o leverage ratios. 
o profitability ratios. 
o utilization ratios. 
2. Which one of these measures a firm's long-run ability to meet its obligations? 
o Cash ratio 
o Total asset turnover 
o Quick ratio 
o Return on equity 
o Equity multiplier 
3. Which ratio measures th...
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ACCOUNTING 333 CHAPTER 3 PRACTICE QUIZ.•ACCOUNTING 333 CHAPTER 3 PRACTICE QUIZ.
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ACCOUNTING 333 CHAPTER 3 
PRACTICE QUIZ. 
Financial ratios that measure a firm's ability to pay its bills over the short run without undue stress 
are often referred to as: 
o asset management ratios. 
o liquidity measures. 
o leverage ratios. 
o profitability ratios. 
o utilization ratios. 
2. Which one of these measures a firm's long-run ability to meet its obligations? 
o Cash ratio 
o Total asset turnover 
o Quick ratio 
o Return on equity 
o Equity multiplier 
3. Which ratio measures th...