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Which of the following indicates a firm will be able to pay its bills in a satisfactory​ manner?

Which of the following indicates a firm will be able to pay its bills in a satisfactory​ manner?

A.

A current ratio of​ 2:1 or higher

B.

An activity ratio of​ 5:1 or less

C.

A net income to common shares outstanding ratio of​ 1:1 or less

D.

A debt to equity ratio of​ 1:1 or higher

E.

A profitability ratio of​ 5:1 or higher

 
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