A conventional measure of a business's liquidity is a comparison of current assets to current liabilities.

Name: A conventional measure of a business's liquidity is a comparison of current assets to current liabilities.
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Question

Quizplus · Accepted Answer

This statement is true. The current ratio is calculated by dividing current assets by current liabilities, which gives an indication of a business's ability to meet its short-term financial obligations.

A Conventional Measure of a Business's Liquidity Is a Comparison