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Question 72Asked in DSSSB TGT Computer Science (Technical), 13 Sep 2025, Shift 3 (5:00 PM)

Which financial ratio measures a company's ability to cover its short-term liabilities with its

Which financial ratio measures a company's ability to cover its short-term liabilities with its short-term assets?
  1. AReturn on Equity
  2. BDebt-to-Equity Ratio
  3. CCurrent Ratio
  4. DNet Profit Margin
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Correct answer: (C) Current Ratio

Explanation

Current ratio = current assets ÷ current liabilities. It measures short-term liquidity, that is, the ability to pay short-term debts.

From DSSSB TGT Computer Science PYQ (Technical), 13 Sep 2025, Shift 3 (5:00 PM)

This is question 72 of DSSSB TGT Computer Science PYQ (Technical), 13 Sep 2025, Shift 3 (5:00 PM). See all questions of this paper with answers, or attempt the paper as a timed online test to get your score and all-India rank.