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Which of the following financial ratios would be most useful toan auditor seeking information...

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Accounting

Which of the following financial ratios would be most useful toan auditor seeking information on a company’s ability to covercurrent obligations?

a. Earnings per share

b. Quick ratio

c. Gross profit margin

d. Sales to assets

Answer & Explanation Solved by verified expert
3.7 Ratings (596 Votes)
The financial ratio which is most useful to an auditor seeking information on a companys liability to cover current obligations is Quick Ratio It is a measure of how well a company can meets its liabilities The ratio is calculated as follows    See Answer
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In: AccountingWhich of the following financial ratios would be most useful toan auditor seeking information on...Which of the following financial ratios would be most useful toan auditor seeking information on a company’s ability to covercurrent obligations?a. Earnings per shareb. Quick ratioc. Gross profit margind. Sales to assets

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