NBE Funeral Service Director

Answer: D - The current asset ratio measures a company's ability to meet its short term financial obligations.

The current ratio (current assets divided by current liabilities) is a measurement derived from the balance sheet, indicating the ability of a company to meet its short term financial obligations. Ideally this number should be greater than one. The quick ratio is similar except it only looks at assets that can be converted into cash quickly. Debt and debt-to-equity ratios look at the amount of debt used to finance a company in proportion to the amount of equity used to fund operations.