The information needed to determine if companies can pay their current obligations is the
A)net income for this year.
B)projected net income for next year.
C)relationship between current assets and current liabilities.
D)relationship between short-term and long-term liabilities.

Question

Quizplus · Accepted Answer

The relationship between current assets and current liabilities, known as the current ratio, is used to assess a company's ability to pay its short-term obligations.

The Information Needed to Determine If Companies Can Pay Their