Which type of financial ratio is computed by dividing the organization's current assets by its current 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