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

Respuesta :

Answer:

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.