Business, 23.08.2020 02:01 panpanriser76

Which of the following ratios would be least useful in determining a company's ability to pay its expenses and liabilities? A) Current ratio
B) Acid-test ratio
C) Price-earnings ratio
D) Times interest earned ratio

Answers: 2

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The ratio that least useful in determining a company's ability to pay its expenses and liabilities is the price-earnings ratio.

The following information is to be considered:

The Price-earnings ratio is the market ratio where it determined the market value of the stock with respect to the earnings.Also it compared the market price per share from the earning per share.

Therefore we can conclude that The ratio that least useful in determining a company's ability to pay its expenses and liabilities is the price-earnings ratio.

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Answer from: angelinamadriga

C) Price-earnings ratio

Explanation:

The Price - earnings ratio is used to calculate the company's share price to its earnings per share. It uses the market value of the stock and thus has the least correlation to the actual inner workings of the company.

The Current and Acid test ratios can be used to calculate if the company is able to cover its current liabilities given its current assets and its most liquid current assets respectively. The Times Interest ratio shows if the company is able to pay its debt payments with the funds available.

The odd one out is therefore the Price-Earnings ratio.

Answer from: Quest

answer; (a) conduct a worksite inspection;

Answer from: Quest

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi

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