The current ratio may also be referred to as the
A) short run ratio.
B) acid-test ratio.
C) working capital ratio.
D) contemporary ratio.

Question

Quizplus · Accepted Answer

The current ratio is also known as the working capital ratio, which measures a company's ability to pay off its short-term liabilities with its current assets. The other options provided (short run ratio, acid-test ratio, contemporary ratio) are either incorrect or do not accurately describe the current ratio.

The Current Ratio May Also Be Referred to as the