Question 1 1 p The current ratio measures a companys rate of

Question 1 1 p The current ratio measures a company\'s rate of cash flow overall ability to pay liabilities proportion of assets that are financed by debt ability to pay current liabilities with current assets 1 pts

Solution

Answer is The ability to pay current liabilities out of current assets.

Explanation:

Current ratio is a short term liquidity ratio whcih suggest the company ability to pay off its short term liabilities out of short term assets of the business.