The current ratio measures: Multiple Choice The ability of a company to pay its current obligations. The amount of profits retained in the business. The ability of a company to quickly sell its inventory to customers. The ability of a company to quickly collect cash from customers.

Respuesta :

The current ratio measures:The ability of a company to pay its current obligations.

What is Current ratio?

Current ratio can defined as the ability of  a company or an organization  has to pay off their debt or obligations

Current ratio  can be calcullated using this formula:

Current ratio=Current assets/ Cureent liabilities

Therefore the current ratio measures:The ability of a company to pay its current obligations.

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