The ratio of current assets to current liabilities is called the
A) current ratio.
B) acid-test ratio.
C) current asset turnover ratio.
D) current liability turnover ratio.

Question

Quizplus · Accepted Answer

The ratio of current assets to current liabilities is known as the current ratio. It measures the ability of a company to pay off its short-term obligations using its current assets.

The Ratio of Current Assets to Current Liabilities Is Called