Which of the following ratios shows the relationship between a firm's current assets and its current liabilities?
A)Asset management ratios
B)Liquidity ratios
C)Debt management ratios
D)Profitability ratios
E)Market value ratios

Question

Quizplus · Accepted Answer

Liquidity ratios are used to determine a company's ability to meet its short-term obligations. The current ratio, which compares current assets to current liabilities, is a commonly used liquidity ratio.

Which of the Following Ratios Shows the Relationship Between a Firm's