The current ratio is used to measure the long-term solvency of the venture and its ability to meet short-term debts.

Name: The current ratio is used to measure the long-term solvency of the venture and its ability to meet short-term debts.
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The current ratio is actually used to measure the short-term solvency of a business, indicating its ability to pay its short-term debts and obligations. It compares a company's current assets to its current liabilities.

The Current Ratio Is Used to Measure the Long-Term Solvency