Which of the following would you calculate if you were concerned about your financial resources with regards to unplanned money emergencies?

Question

Quizplus · Accepted Answer

The current ratio is a measure of a company's ability to pay off its short-term obligations. In personal finance, it can be used to assess whether you have enough financial resources to cover unexpected expenses. It is calculated by dividing your current assets by your current liabilities. A higher current ratio indicates greater liquidity and a better ability to meet short-term financial obligations. Therefore, it is a good choice to calculate if you are concerned about your financial resources with regards to unplanned money emergencies. The other ratios listed are more relevant for analyzing a company's financial health, rather than personal finance.

Which of the Following Would You Calculate If You Were