The current ratio is a measure of a company's:
A) leverage.
B) profitability.
C) liquidity.
D) solvency.

Name: The current ratio is a measure of a company's: A) leverage. B) profitability. C) liquidity. D) solvency.
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Question

Quizplus · Accepted Answer

The current ratio is a measure of a company's liquidity, which is its ability to meet short-term obligations with its current assets. It is calculated by dividing current assets by current liabilities. A higher current ratio indicates a stronger liquidity position.

The Current Ratio Is a Measure of a Company's