The current ratio is computed by dividing current assets by .
A)fixed assets
B)inventories
C)current liabilities
D)accounts receivable

Question

Quizplus · Accepted Answer

The current ratio is a liquidity ratio that measures a company's ability to pay its short-term obligations with its current assets. It is calculated by dividing current assets by current liabilities. Therefore, the best choice is C, current liabilities.

The Current Ratio Is Computed by Dividing Current Assets by