MANAGEMENT

BUISENESS MANAGEMENT

FINANCIAL MANAGEMENT

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Ratio that tells you if the business can pay its debts when they become due.
A
current ratio
B
debt to equity ratio
C
Either A or B
D
None of the above
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.

There is 1 question to complete.