Which ratio is specifically used to assess the ability to meet immediate obligations without including inventory?
Current Ratio
Quick Ratio
Debt-to-Equity Ratio
Return on Assets
Which external source of information can be used to assess the risk of cessation of payments?
Internal annual reports only
BODACC and Infogreffe
Unverified budget forecasts
Professional social networks
What action should a professional take when they identify a risk of cessation of payments for a client?
Ignore the risk to maintain the business relationship
Revise credit terms and strengthen guarantees
Immediately increase credit lines granted
Request a full financial audit without taking immediate action
Under Article L631-1 of the Code de commerce, which element is NOT included in available assets for assessing cessation of payments?
Cash on hand and in bank accounts
Sight bills of exchange
Inventory
Authorized overdrafts
Cessation of payments (legal definition)
Click to see answer
Categorize items by dragging them to the appropriate zones
Items to categorize:
Cash on hand
Overdue supplier debts
Inventory
Undisputed taxes
Categories:
Available assets
Current liabilities
A deterioration of the quick ratio always indicates imminent cessation of payments.
True
False
A debtor may be considered not to be in cessation of payments if they demonstrate that moratoriums granted by their creditors allow them to meet their obligations.