The Current Ratio Measures a Company's ________

question 78

Multiple Choice

The current ratio measures a company's ________.

• A) overall ability to pay liabilities
• B) ability to pay current liabilities from current assets
• C) proportion of assets that are financed by debt
• D) rate of cash flow

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Definitions:

Departmentalisation

The division of an organization into discrete segments based on function, product, geographical location, or customer, to enhance efficiency and performance.

Coordinated Manner

A methodical approach where efforts and processes are systematically aligned and harmonized to achieve a specific goal.

Functional Structure

An organizational design where the company is divided into departments based on specialized functions, such as marketing, finance, and production.