Which of the following is a measure of short-term solvency?
A) Debt to assets ratio
B) Assets to equity ratio
C) Current ratio
D) Dividend payout ratio

Name: Which of the following is a measure of short-term solvency? A) Debt to assets ratio B) Assets to equity ratio C) Current ratio D) Dividend payout ratio
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Question

Quizplus · Accepted Answer

Current ratio measures a company's ability to pay short-term liabilities with short-term assets. It is calculated as current assets divided by current liabilities.

Which of the Following Is a Measure of Short-Term Solvency