Ask Question
18 February, 09:35

The current ratio is A. current assets divided by current liabilities. B. current assets minus current liabilities. C. current assets plus current liabilities. D. current assets multiplied by current liabilities.

+2
Answers (1)
  1. 18 February, 12:48
    0
    Answer: Current assets divided by current liabilities

    Explanation: Current ratio is a liquidity ratio commonly used by analyst to evaluate the ability of company to pay for its short term liabilities with the given level of short term liquid assets. The difference between current assets and current liabilities is called the working capital.

    The ideal current ratio as per the analyst is 1.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “The current ratio is A. current assets divided by current liabilities. B. current assets minus current liabilities. C. current assets plus ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers