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

Name: The relationship between current assets and current liabilities is important in evaluating a company's A) profitability. B) liquidity. C) current value. D) solvency.
Brand: Quizplus
Rating: 4.7 (34 reviews)

Question

Quizplus · Accepted Answer

The relationship between current assets and current liabilities is used to assess a company's liquidity, which is its ability to meet short-term obligations.

The Relationship Between Current Assets and Current Liabilities Is Important