What financial ratio serves as a short-term indicator of the company's ability to pay its short-term liabilities from its short-term assets?
A) quick ratio
B) current ratio
C) cash ratio
D) strategic ratio
E) inventory ratio

Question

Quizplus · Accepted Answer

The current ratio measures a company's ability to pay its short-term liabilities with its short-term assets, making it a key indicator of short-term financial health.

What Financial Ratio Serves as a Short-Term Indicator of the Company's