A company's ability to pay its current liabilities is called:
A) trend analysis.
B) global analysis.
C) current position analysis.
D) inventory analysis.

Question

Quizplus · Accepted Answer

The ability to pay current liabilities is analyzed through current position analysis, which assesses a company's liquidity and ability to meet short-term obligations. Trend analysis looks at changes in financial data over time, global analysis assesses a company's operations and financials on a global scale, and inventory analysis focuses specifically on a company's inventory management.

A Company's Ability to Pay Its Current Liabilities Is Called