The _____ shows whether an organization can pay claims of short-term creditors without selling inventory.
A)quick ratio
B)current ratio
C)days sales outstanding ratio
D)inventory turnover ratio
E)profit 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.The quick ratio shows whether they can pay these claims without selling inventory.

The _____ Shows Whether an Organization Can Pay Claims of Short-Term