Use the following information to answer questions

-What is the current ratio?
A)2.3:1
B)2.0:1
C)0.6:1
D)0.4:1

Question

Use the following information to answer questions 
 
-What is the current ratio?
A)2.3:1 
B)2.0:1 
C)0.6:1 
D)0.4:1

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 calculated by dividing current assets by current liabilities. A current ratio of 2.3:1 means the company has 2.3 times more current assets than current liabilities, indicating good short-term financial health.

Use the Following Information to Answer Questions