BUISENESS MANAGEMENT
FINANCIAL MANAGEMENT
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Ratio that tells you if the business can pay its debts when they become due.
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current ratio
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debt to equity ratio
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Either A or B
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None of the above
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Explanation:
Detailed explanation-1: -This ratio compares a company’s current assets to its current liabilities, testing whether it sustainably balances assets, financing, and liabilities. Typically, the current ratio is used as a general metric of financial health since it shows a company’s ability to pay off short-term debts.
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