The most important information needed to determine if a company can pay its 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 current and non-current liabilities.

Question

Quizplus · Accepted Answer

The relationship between current assets and current liabilities, often referred to as the current ratio, is crucial for determining a company's ability to pay its short-term obligations. This ratio provides insight into the company's liquidity by comparing assets that can be quickly converted into cash to liabilities that are due within a year.

The Most Important Information Needed to Determine If a Company