The most important 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 current and non-current liabilities.

Question

Quizplus · Accepted Answer

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

The Most Important Information Needed to Determine If Companies Can