The current ratio is used to evaluate a firm's ability to pay its short-term debts.
举一反三
- The current ratio is used to help assess a company's ability to pay its debts in the near future.
- The purpose of the current ratio is to evaluate the firm's ability to A: generate sales with a given level of current assets. B: utilize current assets profitably. C: pay its bills in the short run. D: effectively use borrowed funds.
- The current ratio: () A: Is used to measure a company's profitability. B: Is used to measure the relation between assets and long-term debt. C: Measures the effect of operating income on profit. D: Is used to help evaluate a company's ability to pay its debts in the near future.
- The financial ratios that measure a firm's ability to pay its short-term debts are called A: leverage ratios. B: liquidity ratios. C: equity ratios. D: profitability ratios.
- which of the following measures indicates the ability of a firm to pay its current liabilities? A: working capital B: current ratio C: Acid-test ratio D: all of the above