Asked by
Nurse Barbie
on Dec 06, 2024
Verified
Refer to Exhibit 6-2.Green's current ratio at December 31, 2010, was
A) 3.67 times
B) 2.33 times
C) 1.33 times
D) 0.43 times
Current Ratio
The Current Ratio is a liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year.
Current Assets
Assets that are expected to be converted into cash, sold, or consumed within one year or within the business’s operating cycle if longer than a year.
Current Liabilities
Obligations or debts that a company must pay within a year or within its operating cycle.
- Process and interpret critical financial ratios, namely price/earnings ratio, dividend yield, profit margin, return on total assets, current ratio, inventory turnover, and debt ratio.
Verified Answer
AR
Learning Objectives
- Process and interpret critical financial ratios, namely price/earnings ratio, dividend yield, profit margin, return on total assets, current ratio, inventory turnover, and debt ratio.