To find out the relationship between assets that can be converted to cash within a year and liabilities that will be paid within a year,you can look up Zanzibar Corp.'s _____ ratio in its annual report.

Question

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The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year. It is calculated by dividing current assets by current liabilities, thus showing the relationship between assets that can be converted to cash within a year and liabilities that will be paid within a year.

To Find Out the Relationship Between Assets That Can Be