The Current Ratio Measures ________

question 66

Multiple Choice

The current ratio measures ________.

• A)a company's ability to sell its long-term assets
• 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:

Scapula

Thin, triangular-shaped, flat bone located on the dorsal surface of the rib cage; also called shoulder blade.

Radius

The lateral bone of the forearm.

Biceps Brachii

A muscle of the upper arm that flexes the elbow and supinates the forearm.

Radius

A bone in the forearm, extending from the lateral side of the elbow to the thumb side of the wrist.