Question Help A company's ability to pay liabilities with current assets is measured by which of...

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Question

Question Help A companys ability to pay liabilities with current assets is measured by which of the following ratios? O A. C

Answer 1

Answer #1

The answer would be "A", Current Ratio.

With the help of this ratio one can analyse and determine the ability of a company to pay off it's current liabilities using it's current assets.

Generally, a company having current ratio of 2:1 is considered as a healthy company.

Answer 2

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