The relationship between current assets and current liabilities is important in evaluating a company's
A) profitability.
B) liquidity.
C) market value.
D) turnover.

Question

Quizplus · Accepted Answer

The relationship between current assets and current liabilities is crucial in evaluating a company's liquidity, as it indicates the company's ability to pay off its short-term obligations with its short-term assets.

The Relationship Between Current Assets and Current Liabilities Is Important