Which of the following would be least useful in assessing a firm's long-term debt-paying ability?
A)long-term debt to equity
B)times interest earned
C)debt to equity
D)current ratio

Question

Quizplus · Accepted Answer

The current ratio measures a firm's ability to pay its current liabilities with its current assets. It does not provide an indication of the firm's long-term debt-paying ability. The other options, long-term debt to equity, debt to equity, and times interest earned, are all ratios that provide information about a firm's ability to make long-term debt payments.

Which of the Following Would Be Least Useful in Assessing