Which of the Following Does the Current Ratio Measure

question 53

Multiple Choice

Which of the following does the current ratio measure?

• A)The company's overall ability to pay liabilities
• B)The company's rate of cash flow
• C)The proportion of the company's assets that are financed with debt
• D)The company's ability to pay current liabilities with current assets

---

Definitions:

Labour Standards

The established amount of time required to perform a task, based on measurements of work performance, used for planning and payroll purposes.

Fair Day's Work

The expectation of a reasonable amount of work to be completed by an employee within a workday.

Classical Stopwatch Study

A time study method where a timekeeping device is used to measure the time it takes for a worker to perform a set of tasks or operations.

Time Study

Timing a sample of a worker’s performance and using it as a basis for setting a standard time.