The current ratio is used to evaluate the ability of a business to meet its short-term obligations.

Name: The current ratio is used to evaluate the ability of a business to meet its short-term obligations.
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The current ratio is a liquidity ratio that measures a company's ability to cover its short-term obligations with its current assets. A higher current ratio indicates a better ability to meet short-term obligations.

The Current Ratio Is Used to Evaluate the Ability of a Business