The ability to meet debts as they become due is known as __________________?

Related Mcqs:

1. What type of depreciation is due to the reduction of the physical ability of an equipment or asset to produce results ?

   A. Functional depreciation
   B. Design depreciation
   C. Physical depreciation
   D. Demand depreciation

2. The ability to convert assets to cash quickly is known as ________________?

   A. Solvency
   B. Liquidity
   C. Leverage
   D. Insolvency

3. Falling drops of water become spheres due to the property of ________________?

   A. adhesion
   B. cohesion
   C. surface tension
   D. viscosity
   E. compressibility

4. A manufacturing firm maintains one product assembly line to produce signal generators. Weekly demand for the generators is 35 units. The line operates for 7 hours per day, 5 days per week. What is the maximum production time per unit in hours required of the line to meet the demand ?

   A. 1.0 hour per unit
   B. 1.2 hours per unit
   C. 1.4 hours per unit
   D. 1.6 hours per unit

5. __________________ is the element of value which a business has earned through the favorable consideration and patronage of its costumers arising from its well known and well conducted policies and operations?

   A. Status company
   B. Big income
   C. Known owners
   D. Goodwill

6. The true value of interest rate computed by equations for compound interest for a 1 year period is known as __________________?

   A. Expected return
   B. Nominal interest
   C. Effective interest
   D. Economic return

7. A firm borrows P2,000 for 6 years at 8%. At the end of 6 years, it renews the loan for the amount due plus P2,000 more for 2 years at 8%. What is the lump sum due ?

   A. P 3,260.34
   B. P 3,280.34
   C. P 3,270.34
   D. P 3,250.34

8. What is an index of short-term paying ability ?

   A. Price-earnings ratio
   B. Current ratio
   C. Profit margin ratio
   D. Gross margin

9. Mercury does not wet glass. This is due to property of liquid known as_________________?

   A. adhesion
   B. cohesion
   C. surface tension
   D. viscosity
   E. compressibility

10. Fresh sewage may become stale in_________________?

    A. One hour
    B. Two to three hours
    C. Three to four hours
    D. Six hours