The current ratio is one of the most common measures of liquidity.

Name: The current ratio is one of the most common measures of liquidity.
Brand: Quizplus
Rating: 4.8 (37 reviews)

Question

Quizplus · Accepted Answer

The statement is correct. The current ratio is calculated by dividing current assets by current liabilities and is used to determine a company's ability to meet its short-term obligations. It is a popular measure of liquidity as it provides an indication of whether a company has enough current assets to cover its current liabilities.

The Current Ratio Is One of the Most Common Measures