The current ratio equals current assets divided by current liabilities.

Name: The current ratio equals current assets divided by current liabilities.
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Question

Quizplus · Accepted Answer

The current ratio is a financial ratio that measures a company's ability to pay its short-term liabilities with its short-term assets. It is calculated by dividing current assets by current liabilities. Therefore, the statement "The current ratio equals current assets divided by current liabilities" is true.

The Current Ratio Equals Current Assets Divided by Current Liabilities