Which of the following would be viewed as a measure of the firm's ability to meet its
long-term financial obligations?
a. Liquidity ratio
b. Balance sheet ratio
c. Return on investment
d. Operating ratio
e. Debt ratio
Use the following information to compute the current ratio:Total
liabilities 18,000
Total assets 200,000
Current assets 80,000
Current liabilities 20,000
Owner's equity 60,000
Net income 120,000
Gross income 340,000
a. 0.25
b. 4.00
c. 4.40
d. 10.00
e. 6.00