Which of the following ratios is most useful in evaluating liquidity?
A)Return on assets.
B)Return on equity.
C)Debt to equity ratio.
D)Current ratio.

Question

Quizplus · Accepted Answer

The current ratio is a liquidity ratio that measures a company's ability to pay short-term liabilities with its short-term assets. It provides an indication of a company's ability to generate cash to meet its obligations in the short term.

Which of the Following Ratios Is Most Useful in Evaluating