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

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.

Quizplus · Accepted Answer

Both the current cash debt coverage ratio and the current ratio are measures used to evaluate a company's ability to pay its current liabilities. The current ratio compares current assets to current liabilities, while the current cash debt coverage ratio assesses cash flow relative to current liabilities.

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