Accounting: Tools for Business Decision Making, 5th Edition

Published by Wiley
ISBN 10: 1118128168
ISBN 13: 978-1-11812-816-9

Chapter 2 - A Further Look at Financial Statements - Self-Test Questions: 8

Answer

b

Work Step by Step

The current ratio compares assets that can be converted to cash in the short term to debts payable in the short term, so it is an indication of the company's ability to pay their short term debts.
Update this answer!

You can help us out by revising, improving and updating this answer.

Update this answer

After you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.