Exam IIA-CIA-Part2 Topic 1 Question 58 Discussion

Actual exam question for IIA's IIA-CIA-Part2 exam
Question #: 58
Topic #: 1
Which of the following represents a ratio that measures short-term debt-paying ability?

Suggested Answer: C Vote an answer

The current ratio = Current Assets รท Current Liabilities. This is a key liquidity measure, showing an organization's ability to pay short-term obligations with short-term assets.
Debt-to-equity (A) measures leverage.
Profit margin (B) measures profitability.
Times interest earned (D) measures ability to cover interest expense.Thus, the correct ratio for short-term debt- paying ability is the current ratio.

by Mabel at Aug 13, 2026, 11:41 PM

Limited Time Offer

15%

Off

Get Premium IIA-CIA-Part2 Questions as Interactive Self Test Engine or PDF

Comments

Chosen Answer:
This is a voting comment (?) , you can switch to a simple comment.
Switch to a voting comment New
Nick name: Submit Cancel
A voting comment increases the vote count for the chosen answer by one.

Upvoting a comment with a selected answer will also increase the vote count towards that answer by one. So if you see a comment that you already agree with, you can upvote it instead of posting a new comment.
0
0
0
10