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    Question

    Which financial metric is used to measure a company's

    ability to pay its short-term obligations?
    A Return on Assets Correct Answer Incorrect Answer
    B Current Ratio Correct Answer Incorrect Answer
    C Net Profit Margin Correct Answer Incorrect Answer
    D Price-to-Earnings Ratio Correct Answer Incorrect Answer
    E Debt-to-Equity Ratio Correct Answer Incorrect Answer

    Solution

    The current ratio measures a company's ability to pay its short-term liabilities with its short-term assets.

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