Business FinancesQuestion 1219 of 1605
A quick way to see if a business can pay its short-term bills is to check its:
a.Depreciation schedule
b.Franchise tax return
c.Current ratio
d.Building permit
Explanation
The current ratio (current assets divided by current liabilities) is the standard quick measure of short-term liquidity, indicating whether the business has enough current assets to cover obligations due within a year.
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