Question 2
The current ratio is a measure of:
A company's ability to pay its long-term debt obligations.
A company's liquidity and short-term solvency.
A company's ability to generate profits.
A company's efficiency in managing its inventory.
The current ratio is a measure of:
A company's ability to pay its long-term debt obligations.
A company's liquidity and short-term solvency.
A company's ability to generate profits.
A company's efficiency in managing its inventory.
Correct answer
A company's liquidity and short-term solvency.
Question 2 of 18 in the IIT Madras BS Business Data Management (BDM) End Term paper sat on 30 Apr 2023, in the January 2023 term (IIT M DIPLOMA ET1 EXAM QPD1 S2 30 Apr 2023). It carries 2 marks.