The most common liquidity ratio is current assets to current liabilities, known as the:
A) debt-equity ratio.
B) current ratio.
C) profit and loss ratio.
D) return on investment ratio.
E) stockholders' equity ratio.

Question

Quizplus · Accepted Answer

The most common liquidity ratio is current assets to current liabilities, called the current ratio or net working capital ratio.

The Most Common Liquidity Ratio Is Current Assets to Current