The current ratio is expressed as
A) current assets divided by current liabilities.
B) current assets minus current liabilities.
C) current liabilities divided by non-current liabilities.
D) current assets minus owner's equity.

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 calculated by dividing current assets by current liabilities.

The Current Ratio Is Expressed as