Before lending money to Brokah,Inc.,you should calculate Brokah's current ratio to measure its ________.
A)liquidity,i.e.,its ability to pay its current debts as they come due
B)ability to turn its noncurrent liabilities into current liabilities
C)profitability
D)ability to turn its noncurrent assets into current assets

Question

Quizplus · Accepted Answer

The current ratio measures a company's liquidity, which refers to its ability to pay its current debts as they come due. It is important to assess a company's ability to meet its short-term obligations before lending money to it, and the current ratio is a useful ratio for doing so.

Before Lending Money to Brokah,Inc