Q273
_________ is also known as working capital ratio.
A.
Current ratio
AnswerB.
Quick ratio
C.
Liquid ratio
D.
Debt-equity ratio
Answer: Option A
Solution
Answer: Option A
Solution:
Current ratio is also known as working capital ratio. The working capital ratio is commonly used to assess a company's financial performance. Low working capital ratio values, near one or lower, can indicate serious financial problems with a company. The working capital ratio reveals whether the company has enough short-term assets to pay off its short-term debt.