The current ratio


The current ratio is:

a. Is a solvency measure that indicated the margin of safety of a noteholder or bondholder.       

b. Calculated by subtracting current liabilities from current assets.           

c. Calculated by dividing current liabilities by current assets.        

d. Used to evaluate a company's liquidity and short-term debt paying ability.

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Financial Accounting: The current ratio
Reference No:- TGS01106033

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