The current ratio: a. Is used to help assess a company's ability to pay its debts in the near future. b. Measures the effect of operating income on profit. c. Is used to measure the relationship between assets and long-term debt. d. Is used to measure a company's collection period.

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
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Chapter9: Metric-analysis Of Financial Statements
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The current ratio:
a.
Is used to help assess a company's ability to pay its debts in the near future.
b.
Measures the effect of operating income on profit.
c.
Is used to measure the relationship between assets and long-term debt.
d.
Is used to measure a company's collection period.
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