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defon
3 years ago
13

Which of the following statements does not properly describe the current ratio?

Business
1 answer:
Vaselesa [24]3 years ago
3 0

Answer:

D. It measures a firm's ability to pay its long-term debts as they mature

Explanation:

The current ratio is a ratio of current assets and the current liability which is required to judge the liquidity of the short term.

Current ratio = (Total Current assets) ÷ (total current liabilities)

It is always expressed in times

The current assets equal to

= Cash balance + Short-term investments + Accounts and notes receivable + Inventories + Prepaid expenses, etc

And, the current liabilities

= Short-term obligations + Accounts payable

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She is demonstrated an external locus of control by letting her friends' opinions control her actions, and then blaming them for her decision.

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Answer:

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Explanation

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