An advantage of the current ratio is that it considers the makeup of the current assets.

Name: An advantage of the current ratio is that it considers the makeup of the current assets.
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The current ratio measures a company's ability to pay short-term obligations or those due within one year, by comparing current assets to current liabilities. It does not consider the makeup or quality of the current assets, such as how liquid or easily convertible to cash those assets are.

An Advantage of the Current Ratio Is That It Considers