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  • Finance Multiple Choice Online Quiz
  • Which of the following ratios would help a business to ev...
Multiple choice

Which of the following ratios would help a business to evaluate its liquidity?

  1. current ratio

  2. debt to equity ratio

  3. profitability ratio

  4. net profit ratio

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The current ratio (current assets divided by current liabilities) is a primary liquidity ratio used to determine a company's ability to pay off short-term obligations.

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