Science › Definitions › Question #10901
Single Choice Easy

QWhich term refers to a financial ratio that measures a company's ability to meet its short-term obligations using its most liquid assets?

ID: #10901 Definitions 117 views
Question Info
#10901Q ID
EasyDifficulty
DefinitionsTopic
Start Quiz on This Topic
 Your Answer

Choose the Best Option

Click any option to instantly check if you're correct.

  • A Current ratio ✔ ✖
  • B Debt-to-equity ratio ✔ ✖
  • C Return on assets (ROA) ✔ ✖
  • D Earnings before interest and taxes (EBIT) ✔ ✖
Correct Answer

Explanation

The current ratio is a financial ratio that measures a company's ability to meet its short-term obligations using its most liquid assets. It is calculated by dividing current assets by current liabilities. A higher current ratio indicates a better ability to cover short-term obligations.

 Continue Practice
Previous Question Next Question
 Share

Share This Question

Challenge a friend or share with your study group.

 More from This Topic

Related MCQ Questions

Study of the environment is called... Study of animal is called... Study of properties of matter and energy is called... The science of knowledge or wisdom is called... Study of properties of substances is called... Study of surface of the earth and its inhabitants are called... Study of life is called... Study of the universe is called... Study of human material remains called... What is the term for a formal written agreement between two or more countries or organizations that outlines their mutual goals and responsibilities?...