The current ratio measures a. The ability of a company to quickly collect cash from customers. b. The ability of a company to quickly sell its inventory to customers.c. The ability of a company to report profits in the urrent year. d. The ability of a company to pay its current obligations.

The current ratio measures a. The ability of a company to quickly collect cash from customers. b. The ability of a company to quickly sell its inventory to customers.c. The ability of a company to report profits in the urrent year. d. The ability of a company to pay its current obligations.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

The current ratio measures
a. The ability of a company to quickly collect cash from customers.
b. The ability of a company to quickly sell its inventory to customers.
c. The ability of a company to report profits in the urrent year.
d. The ability of a company to pay its current obligations.

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