The Current Ratio Measures

question 134

Multiple Choice

The current ratio measures:

• A)the amount of total assets available to the business currently.
• B)a company's ability to pay current liabilities with its total assets.
• C)a company's ability to pay current liabilities with current assets.
• D)a company's profitability during a particular period.

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Definitions:

Specific Tasks

Distinct activities or assignments that are designed to achieve a particular objective within a set timeframe.

Situational Contingencies

Refers to external or internal factors that influence the effectiveness of management strategies and decision-making processes.

Organizational Design

The process of structuring an organization in a way that facilitates achieving its goals effectively and efficiently.

Formal Authority

The right bestowed upon an individual or unit to make decisions, command obedience, and enforce rules within an organization's hierarchy.