If a company has a strong rate of return on total assets, that shows that they can easily pay off their current liabilities with their current assets.

Question

Quizplus · Accepted Answer

The rate of return on total assets measures how efficiently a company is using its assets to generate profits. It does not necessarily indicate the company's ability to pay off its current liabilities with its current assets. This would be reflected in the current ratio or quick ratio.

If a Company Has a Strong Rate of Return on Total