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(TCO 6) What is important to a firm's long-term debt paying ability? (Points 5)

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31. (TCO 6) What is important to a firm's long-term debt paying ability? (Points : 5)

       Expenses

 

       Capital assets

 

       Long-term debt

 

       Profitability

 

 

Question 32.

32. (TCOs 5 and 6) Which of the following is typically considered the most indicative of a firm's short-term debt paying ability? (Points : 5)

       Working capital

 

       Current ratio

 

       Acid test

 

       Cash ratio

 

       Days' sales in receivables

 

 

Question 33.

33. (TCO 5) The bond payable account is considered a firm's (Points : 5)

       asset.

 

       expense.

 

       liability.

 

       cash.

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