Which of the following ratios is used to evaluate a company's liquidity?
A)Debt-to-assets ratio
B)Fixed asset turnover ratio
C)Return on equity ratio
D)Current ratio

Question

Quizplus · Accepted Answer

Liquidity ratios measure the company's ability to use current assets to pay its current obligations as they become due.The current ratio is a liquidity ratio.The debt-to-assets ratio is a solvency ratio.The fixed asset turnover and return on equity ratios are profitability ratios.

Which of the Following Ratios Is Used to Evaluate a Company's