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Differentiate between current assets and current liabilities

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Question: 1. Which ratio best reflects a company's ability to meet immediate interest payments?

(a) Debt ratio.

(b) Equity ratio.

(c) Times interest earned.

2. 1. Which two short-term liquidity ratios measure how frequently a company collects its accounts?

2. What measure reflects the difference between current assets and current liabilities?

3. Which two ratios are key components in measuring a company's operating efficiency? Which ratio summarizes these two components?

Reference no: EM131535989

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