Which ratio measures a company's ability to pay its short-term obligations? a) Debt-to-equity ratio b) Return on assets c) Current ratio d) Gross profit margin

SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter3: Taxes On The Financial Statements
Section: Chapter Questions
Problem 1BD
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Which ratio measures a company's ability to pay
its short-term obligations?
a) Debt-to-equity ratio
b) Return on assets
c) Current ratio
d) Gross profit margin
Transcribed Image Text:Which ratio measures a company's ability to pay its short-term obligations? a) Debt-to-equity ratio b) Return on assets c) Current ratio d) Gross profit margin
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