Which of the following is the formula for the current ratio?
A) Net income/Net sales
B) Total current assets/Total current liabilities
C) Net sales/Total current liabilities
D) Total current assets - Total current liabilities
E) Net income/Total current assets and liabilities

Question

Quizplus · Accepted Answer

The current ratio is calculated by dividing total current assets by total current liabilities, which is a measure of a company's ability to pay off its short-term liabilities with its short-term assets.

Which of the Following Is the Formula for the Current