Ask Question
23 April, 01:05

Which of these measures is an evaluation of a company's ability to pay current liabilities? Group of answer choices Current ratio Earnings per share Both earnings per share and current ratio Debt-to-assets ratio

+5
Answers (1)
  1. 23 April, 01:35
    0
    The answer is current ratio

    Explanation:

    Current ration is the ratio of Current asset to current liability.

    Current ratio = Current asset/current liability.

    This ration is a measure of liquidity and liquidity is the ability of a company to meet its immediate or short term liabilities.

    Liquidity contributes to a company's credit-worthiness which is the ability of a borrower to repay its debt in a timely manner.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Which of these measures is an evaluation of a company's ability to pay current liabilities? Group of answer choices Current ratio Earnings ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers