The current ratio is calculated to determine whether an organisation has sufficient short-term assets from which to meet short-term liabilities.

Name: The current ratio is calculated to determine whether an organisation has sufficient short-term assets from which to meet short-term liabilities.
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The current ratio is a financial metric used to assess a company's ability to cover its short-term liabilities with its short-term assets.

The Current Ratio Is Calculated to Determine Whether an Organisation