For which of the following is the current ratio most useful?
A) In evaluating a company's liquidity.
B) In evaluating a company's solvency.
C) In evaluating a company's profitability.
D) In evaluating a company's leverage.

Question

Quizplus · Accepted Answer

The current ratio is most useful in evaluating a company's liquidity, as it measures the ability of a company to cover its short-term liabilities with its short-term assets.

For Which of the Following Is the Current Ratio Most