The most important information needed to determine if companies can pay their current obligations is the

Question

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The relationship between current assets and current liabilities (known as the current ratio) is the best indicator of a company's ability to pay its current obligations. This ratio measures a company's liquidity and ability to meet short-term obligations. A current ratio of 2 or greater indicates a company has enough current assets to cover its current liabilities. The net income and projected net income are important for determining profitability but do not necessarily reflect a company's ability to pay current obligations. The relationship between short-term and long-term liabilities is important for assessing a company's overall debt management, but it does not directly relate to current obligations.

The Most Important Information Needed to Determine If Companies Can