What is the ratio of total current assets to current liabilities called?
A) the activity ratio
B) the profitability ratio
C) the current ratio
D) the net margin ratio

Question

Quizplus · Accepted Answer

The ratio of total current assets to current liabilities is called the current ratio. This ratio is used to measure a company's ability to pay off its short-term obligations with its current assets. A higher current ratio indicates better short-term liquidity for the company.

What Is the Ratio of Total Current Assets to Current