Catherine has recently reviewed a number of indicators of financial control. The one that troubled her indicated that the company could have trouble meeting its short-term financial obligations. Which of the following was she concerned about?
A) Profit and loss statement
B) Profitability ratio
C) Leverage ratio
D) Current ratio
E) Return on investment

Question

Quizplus · Accepted Answer

The current ratio indicates the extent to which current assets can decline and still be adequate to pay current liabilities.

Catherine Has Recently Reviewed a Number of Indicators of Financial