Question

______ ratio shows the extent to which the firms most liquid assets cover its current liabilities.
debt
current
quick
question 5 (1 point)
calculate the debt ratio from the following: total debt $580000, total assets $847655.
.68:1
1:.68
1:68
question 6 (1 point)
measures the firms ability to make the interest payments on its debt.
times interest earned
current ratio
debt ratio

Explanation:

Step1: Identify quick ratio definition

The quick ratio uses only a firm's most liquid assets (excluding inventory) to cover current liabilities, matching the description.

Step2: Calculate debt ratio formula

Debt ratio = $\frac{\text{Total Debt}}{\text{Total Assets}}$
Substitute values: $\frac{580000}{847655} \approx 0.68$, formatted as 0.68:1

Step3: Identify interest coverage ratio

Times Interest Earned measures a firm's ability to pay debt interest, matching the description.

Answer:

1. Quick
2. .68:1
3. Times Interest Earned