Which of the following is a measure of the liquid position of a corporation?

Question

Quizplus · Accepted Answer

The current ratio is a measure of a company's ability to pay off its short-term liabilities with its current assets. It is calculated by dividing current assets by current liabilities. This provides insight into a company's liquidity and ability to meet its short-term financial obligations. A higher current ratio indicates that a company has enough current assets to cover its current liabilities, while a lower current ratio may indicate that a company may struggle to meet its short-term obligations. The other options - price earnings ratio, debt ratio, and asset turnover - are measures of a company's profitability, leverage, and efficiency respectively, but do not specifically address liquid position.

Which of the Following Is a Measure of the Liquid