Which ratio measures a company's ability to pay its short-term obligations? (a) Current ratio (b) Return on assets (c) Debt-to-equity ratio (d) Gross profit margin

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 19MCQ
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Which ratio measures a company's ability to
pay its short-term obligations?
(a) Current ratio
(b) Return on assets
(c) Debt-to-equity ratio
(d) Gross profit margin
Transcribed Image Text:Which ratio measures a company's ability to pay its short-term obligations? (a) Current ratio (b) Return on assets (c) Debt-to-equity ratio (d) Gross profit margin
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