Which of the following measures the retailer's ability to pay its suppliers with assets such as cash and accounts receivable?

Question

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The current ratio is short term assets divided by short term liabilities.It evaluates the retailer's ability to pay its short-term debt obligations,such as accounts payable (payments to suppliers)and short-term loans payable to a bank,with short-term assets such as cash,accounts receivable,and inventory.

Which of the Following Measures the Retailer's Ability to Pay