An increase in the current ratio would indicate an increase in [blank].
A)leverage
B)liquidity
C)return on investment
D)operating profit

Question

Quizplus · Accepted Answer

The current ratio measures a company's ability to pay its short-term obligations with its current assets. An increase in the current ratio means that the company has a higher proportion of current assets to current liabilities, indicating an increase in liquidity. A higher current ratio means the company is better able to meet its short-term obligations.

An Increase in the Current Ratio Would Indicate an Increase