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Which ratio would you use to assess a company's ability to pay bills?

• Interest coverage ratio

 

• Times interest earned ratio

 

• Price earnings ratio

 

• Current ratio

 

• Profit margin ratio

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Question added by Shazia Anees , Assistant Manager Finance , Arham Trading Company
Date Posted: 2015/05/22
Mohamed Abdelrahman
by Mohamed Abdelrahman , Senior Accountant , Msafat Company

correct answer 

Current ratio

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Shahbaz Hayder
by Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies

Current ratio is the right answer.

Imtiaz Ahmad
by Imtiaz Ahmad , SR. WAREHOUSE SUPERVISOR , Basateen Foods Saudi Arabia Ltd

The most common liquidity ratio is the current ratio, which is the ratio of current assets to current liabilities.

Abdul Majid Khatri
by Abdul Majid Khatri , A Qualified Chartered Accountant , Honeycomb Logistics Pvt. Ltd.

Current Ratio ....................................!!!

Gihan Perera
by Gihan Perera , Head Of Finance Department , SIBCO PVT LTD

Current Ratio is use to assess a company's ability to pay bills

Paolo Borchetta
by Paolo Borchetta , Managing Director , NIMM International Mauritanie Mining

Current or more stringently acid ratio depending on the time convertibility of account receivable with respect to the timing for bill's payment

shahbaz ali
by shahbaz ali , Officer Compliance , Prolink Consiltnig PVT assigned to Allied Bamk Head Office

current ratio is used a company ability to pay the bills because it is related to current assets and current liability.

Munavar Pk
by Munavar Pk , ACCOUNTANT , PIPE INDIA ENTERPRISES

I THINK ITS CURRENT RATIO. BECAUSE THIS RATIO FOR CURRENT ASSET AND CURRENT LIABILITIES

Ahmed Abdi Mahad
by Ahmed Abdi Mahad , Director of Internal Auditing Directorate , Jigjiga University

The correct answer is the current ratio

Ahmed kandil
by Ahmed kandil , Cost Controller , Battour Holding Cpompany

Current Ratio is the correct answer Thank you

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