Your ________ is found by dividing monetary assets by current liabilities and is a good measure of liquidity.
A)debt ratio
B)current ratio
C)net worth
D)net cash flows

Question

Quizplus · Accepted Answer

The current ratio is calculated by dividing current assets (which include monetary assets) by current liabilities. This ratio reflects the ability of a company to meet its short-term obligations with its current assets. A higher current ratio indicates better liquidity. The other options (debt ratio, net worth, and net cash flows) do not specifically focus on liquidity.

Your ________ Is Found by Dividing Monetary Assets by Current