Ratios: Working Capital and the Current Ratio Video Lessons

Concept

# Problem: Charity Kemper analyzes a company's current ratio before deciding whether to invest in the company. What types of information does Charity hope to gleam by analyzing the current ratio? a. The company's proportion of current to long-term liabilities. b. The company's proportion of current to long-term assets. c. The company's proportion of assets that is financed with debt. d. The company's ability to pay current liabilities with current assets.

###### Problem Details

Charity Kemper analyzes a company's current ratio before deciding whether to invest in the company. What types of information does Charity hope to gleam by analyzing the current ratio?

a. The company's proportion of current to long-term liabilities.

b. The company's proportion of current to long-term assets.

c. The company's proportion of assets that is financed with debt.

d. The company's ability to pay current liabilities with current assets.