The current ratio is a
A) liquidity ratio.
B) profitability ratio.
C) leverage ratio.
D) cash flow ratio.

Name: The current ratio is a A) liquidity ratio. B) profitability ratio. C) leverage ratio. D) cash flow ratio.
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Question

Quizplus · Accepted Answer

The current ratio is a liquidity ratio that measures a company's ability to pay its short-term obligations by comparing its current assets to its current liabilities. It is used to evaluate a company's short-term solvency and liquidity.

The Current Ratio Is a