Which type of financial ratio is computed by dividing the organization's present assets by its present liabilities?
A)inventory turnover ratio
B)days sales outstanding ratio
C)profit ratio
D)current ratio
E)debt-to-assets ratio

Question

Quizplus · Accepted Answer

The current ratio (current assets divided by current liabilities) tells managers whether they have the resources available to meet the claims of short-term creditors.

Which Type of Financial Ratio Is Computed by Dividing the Organization's