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5. 5. The current ratio measures: A) The ability of a company to quickly sell its...

5.

5. The current ratio measures:

A) The ability of a company to quickly sell its inventory to customers.

B) The amount of profits retained in the business.

C) The ability of a company to quickly collect cash from customers.

D) The ability of a company to pay its current obligations.

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Answer #1
Option D is the answer

Current Ratio = Current assets/Current liabilities

Current Ratio is a liquidity ratio which measures the company's ability to meet is current payment obligations with its current assets
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