Maya has just reviewed a number of indicators of financial control for her firm. One that worries her indicates that the company may soon have trouble making loan payments and clearing its accounts receivables. Maya is concerned about
A) The profit and loss statement.
B) The profitability ratio.
C) A leverage ratio.
D) The current ratio.
E) The return on investment ratio.

Question

Quizplus · Accepted Answer

The most common liquidity ratio is current assets to current liabilities, called the current ratio or net working capital ratio. This ratio indicates the extent to which current assets can decline and still be adequate to pay current liabilities.

Maya Has Just Reviewed a Number of Indicators of Financial