You are a CEO who wants to determine whether the company has sufficient resources available to address loan and interest payments that are due to some short-term creditors. Which measure would you find most useful?
A)days sales outstanding ratio
B)operating margin
C)return on investment
D)current ratio
E)debt-to-assets ratio

Question

Quizplus · Accepted Answer

The current ratio measures a company's ability to pay short-term obligations with its current assets, making it useful for assessing resource sufficiency for loan and interest payments.

You Are a CEO Who Wants to Determine Whether the Company