4. 2. W mi Accounting cycle Current ratio Liquidity Solvency Working capital 5. 3 A. A financial ratio that is computed by dividing current assets by current liabilities. B. The ability of a firm to pay its debts as they come due. C. The ability to convert assets into cash. D. The excess of the current assets of a business over its current liabilities. E. The process that begins with analyzing and journalizing transactions and ends with the post-closing trial balance