Match the following terms with the appropriate definition.
-A ratio that is used to help evaluate a company's ability to pay its short-term obligations,
calculated by dividing current assets by current liabilities.
A)Stockholders' equity
B)Unclassified balance sheet
C)Long-term investments
D)Current liabilities
E)Closing entries
F)Current ratio
G)Plant assets
H)Current assets
I)Intangible assets
J)Classified balance sheet

Question

Quizplus · Accepted Answer

The current ratio is a financial metric used to evaluate a company's ability to pay off its short-term liabilities with its short-term assets. It is calculated by dividing current assets by current liabilities.

Match the Following Terms with the Appropriate Definition