Which of the following measures a company's ability to pay current liabilities with current assets?
A)Debt ratio
B)Profit
C)Total assets
D)Current ratio

Name: Which of the following measures a company's ability to pay current liabilities with current assets? A)Debt ratio B)Profit C)Total assets D)Current ratio
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Question

Quizplus · Accepted Answer

The current ratio measures a company's ability to pay its current liabilities with its current assets by dividing current assets by current liabilities.

Which of the Following Measures a Company's Ability to Pay