What Does the Current Ratio Measure

question 129

Multiple Choice

What does the current ratio measure?

• A)The relative proportion of current versus noncurrent assets
• B)Whether current assets are sufficient to pay current liabilities
• C)The speed which current assets can be converted to cash
• D)Whether cash is sufficient to pay current liabilities

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Definitions:

Partnership

A collaborative relationship between two or more parties, often based on shared goals, responsibilities, and benefits.

Implement Strategies

Refers to the execution of carefully developed plans or procedures to achieve specific goals.

Work Together

The act of collaborating or cooperating with others to achieve a common goal or task.

Skill Development

The process of learning, enhancing, and mastering new abilities or competencies in various areas of life.