The most common liquidity ratio is current assets to current liabilities,which is also called the
A)debt-equity ratio.
B)current ratio.
C)profit loss ratio.
D)return on investment ratio.
E)stockholders' equity ratio.

Question

Quizplus · Accepted Answer

The most common liquidity ratio is the current ratio, which measures a company's ability to meet its short-term obligations with its current assets. It is calculated by dividing current assets by current liabilities. This ratio is important for creditors and investors as it indicates the short-term solvency of the company.

The Most Common Liquidity Ratio Is Current Assets to Current