If a company's ________ ratio skyrockets or plummets versus industry averages, then cash (and other short-term assets) must be managed.
A) leverage
B) profitability
C) current
D) asset turnover
E) activity

Question

Quizplus · Accepted Answer

The current ratio measures a company's ability to pay short-term obligations with its short-term assets. A significant deviation from industry averages indicates a need to manage cash and other short-term assets effectively.

If a Company's ________ Ratio Skyrockets or Plummets Versus Industry