Which of the following ratios provides information about liquidity?
A)Net profit margin.
B)Current ratio.
C)Inventory turnover.
D)Sales to assets.

Question

Quizplus · Accepted Answer

The current ratio is a liquidity ratio that measures a company's ability to pay its short-term liabilities with its short-term assets. A high current ratio indicates that a company has enough current assets to pay its short-term debts.

Which of the Following Ratios Provides Information About Liquidity