The current ratio is calculated as
A) current assets plus current liabilities.
B) current assets minus current liabilities.
C) current assets divided by current liabilities.
D) current assets times current liabilities.

Question

Quizplus · Accepted Answer

The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations, calculated by dividing current assets by current liabilities.

The Current Ratio Is Calculated as