The current ratio is used to assess:
A) Solvency
B) Bankruptcy position
C) Liquidity
D) Financial leverage
E) None of the above

Name: The current ratio is used to assess: A) Solvency B) Bankruptcy position C) Liquidity D) Financial leverage E) None of the above
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Question

Quizplus · Accepted Answer

The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year. It is calculated by dividing current assets by current liabilities.

The Current Ratio Is Used to Assess