Which of the following has to be taken into consideration while calculating current ratio?
A) Long-term loans
B) Buildings
C) Short-term loans
D) Machinery
E) Human assets

Question

Quizplus · Accepted Answer

The current ratio is short-term assets divided by short-term liabilities.It evaluates the retailer's ability to pay its short-term debt obligations,such as accounts payable (payments to suppliers)and short-term loans payable to a bank,with short-term assets such as cash,accounts receivable,and inventory.

Which of the Following Has to Be Taken into Consideration