The relationship between current assets and current liabilities is important in evaluating a company's
A)profitability.
B)liquidity.
C)fair value.
D)solvency.

Question

Quizplus · Accepted Answer

The relationship between current assets and current liabilities is crucial in evaluating a company's liquidity, as it indicates the company's ability to cover its short-term obligations with its short-term assets.

The Relationship Between Current Assets and Current Liabilities Is Important