The Current Ratio Is

question 139

Multiple Choice

The current ratio is

• A) current assets plus current liabilities.
• B) current assets minus current liabilities.
• C) current assets divided by current liabilities.
• D) current assets multiplied by current liabilities.

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Definitions:

Year 1

A term typically used to refer to the first year of an activity, study, or business operation.

Liquidity Ratios

Financial metrics used to evaluate a company's ability to meet its short-term obligations, indicating its financial health.

Short-Term Debt

Financial obligations and loans that are due to be paid back within a year from the balance sheet date.

Measure

An evaluation or estimation of the nature, quality, or ability of someone or something.