If Hector's firm's current ratio _____,its liquidity _____.
A)increases;increases
B)increases;decreases
C)decreases;increases
D)increases;remains the same

Question

Quizplus · Accepted Answer

The current ratio measures a firm's ability to pay its short-term obligations. An increase in the current ratio indicates that the firm has more current assets relative to its current liabilities, which increases its liquidity.

If Hector's Firm's Current Ratio _____,Its Liquidity _____

If Hector's Firm's Current Ratio _,Its Liquidity _