Which measure(s) is(are) an evaluation of a company's ability to pay current liabilities?
1) Current cash debt coverage ratio.
2) Current ratio.

Question

Quizplus · Accepted Answer

The current cash debt coverage ratio and the current ratio both evaluate a company's ability to pay its current liabilities. The current ratio measures the proportion of current assets to current liabilities, while the current cash debt coverage ratio assesses the cash available to cover current liabilities.

Which Measure(s) Is(are) an Evaluation of a Company's Ability to Pay