Which of the following terms tells managers whether they have the resources available to meet the claims of short-term creditors?
A)Gross profit margin
B)Return on capital
C)Return on investment
D)Operating margin
E)The current ratio

Question

Quizplus · Accepted Answer

The current ratio measures a company's ability to pay short-term obligations with its current assets, indicating if resources are available to meet short-term creditors' claims.

Which of the Following Terms Tells Managers Whether They Have