Which measure is an evaluation of a company’s ability to pay current liabilities?

(a) Current cash debt coverage ratio.

(b) Current ratio.

pany has a low quality of earnings?

(a) The same accounting principles are used each year.

(b) Revenue is recognized when earned.

(c) Maintenance costs are capitalized and then depreciated.

(d) The company’s P-E ratio is high relative to competitors.

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