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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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