The current ratio
A)provides users with an estimate of a company's human resources.
B)is reported on a company's balance sheet in the asset section.
C)is a measure of a company's solvency.
D)is a measure of a company's leverage.

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 a measure of a company's solvency, not its human resources, leverage, or a specific item reported on the balance sheet.

The Current Ratio