Which of the following statements does not properly describe the current ratio?

a. it measures the ability of a firm to pay its debts in the short-run.

b.it is current assets divided by current liabilities.

c. it is a measure of a firm's short-run liquidity

d. it measures a firm's ability to pay its long-term debts as they mature

D. It measures a firm's ability to pay its long-term debts as they mature

Explanation:

The current ratio is a ratio of current assets and the current liability which is required to judge the liquidity of the short term.

Current ratio = (Total Current assets) ÷ (total current liabilities)

It is always expressed in times

The current assets equal to

= Cash balance + Short-term investments + Accounts and notes receivable + Inventories + Prepaid expenses, etc

And, the current liabilities

= Short-term obligations + Accounts payable

We can observe physical properties of elements and compounds without changing the substance.

Examples of physical properties: Density, color, boiling point, state of matter, appearance: dull or shiny, etc. 

But we can also observe and measure chemical properties by reacting a substance with something else. For example, like mixing baking soda and vinegar together. The vinegar reacts with the baking soda and produces carbon dioxide: a new substance. 

Some examples of chemical properties: Flammability, amount of heat that is released during combustion, toxicity (how much damage it causes to other organisms), radioactivity, and ability to oxidize (when you have metal that becomes rusty looking).