The ________ ratio is a measure of the small company's ability to pay current debts from current assets.
A)debt-to-net worth
B)current
C)quick
D)debt-to-assets

Question

Quizplus · Accepted Answer

The current ratio is specifically designed to measure a company's ability to cover its current liabilities with its current assets, making it a key indicator of its short-term financial health.

The ________ Ratio Is a Measure of the Small Company's