Suzanne has recently reviewed a number of indicators of financial control. The one that troubled her, the ________, indicated that the company could have trouble meeting its short-term financial obligations.
A) profit and loss statement
B) profitability ratio
C) leverage ratio
D) current ratio
E) return on investment

Question

Quizplus · Accepted Answer

The current ratio measures a company's ability to meet its short-term financial obligations. A low current ratio, typically below 1.0, indicates that a company may have difficulty paying off its short-term liabilities with its short-term assets.

Suzanne Has Recently Reviewed a Number of Indicators of Financial