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13 May, 07:40

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

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  1. 13 May, 11:38
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    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.
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