Which of the following is working capital and current ratio most useful for evaluating?

Question

Quizplus · Accepted Answer

Working capital and current ratio are both measures of a company's liquidity, which refers to its ability to meet its short-term financial obligations. Evaluating a company's liquidity is important for assessing its ability to pay its bills on time and avoid insolvency. Solvency is a measure of a company's ability to meet its long-term financial obligations, profitability is a measure of how much profit a company is generating relative to its expenses, and revenues are simply a measure of the amount of money a company is bringing in. While these factors are important for evaluating a company's overall financial health, they are not directly related to working capital or current ratio.

Which of the Following Is Working Capital and Current Ratio