What ratio measures the ability of the firm to satisfy its short term obligations as they come due?

Name: What ratio measures the ability of the firm to satisfy its short term obligations as they come due?
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Question

Quizplus · Accepted Answer

The current ratio measures the liquidity of the company by comparing its current assets to its current liabilities. It indicates the company's ability to pay off its short-term liabilities using its short-term assets. A higher current ratio indicates a better ability to meet short-term obligations.

What Ratio Measures the Ability of the Firm to Satisfy