Author Question: What ratio is used to measure a firm's ability to pay its current liabilities and what does this ... (Read 49 times)

eruditmonkey@yahoo.com · **on:** Jul 14, 2018

What ratio is used to measure a firm's ability to pay its current liabilities and what does this ratio tell a manager? How can a low ratio be improved?

Question 2

A form of employee training that is accomplished by having a trainee learn by doing the work under the supervision of an experienced employee is called
A) on-the-job training.
B) role-playing.
C) classroom teaching and lectures.
D) conferences and seminars.

TINA · **Reply #1 on:** Jul 14, 2018

Answer to Question 1

A firm's current ratio can be used to evaluate a firm's ability to pay its current liabilities. A firm's current ratio is computed by dividing current assets by current liabilities. The average current ratio for all industries is 2.0, but it varies greatly from industry to industry. A high current ratio indicates that a firm can pay its current liabilities. A low current ratio can be improved by repaying current liabilities, by reducing dividend payments to stockholders to increase the firm's cash balance, or by obtaining additional cash from investors.

Answer to Question 2

A