Current ratio is computed by:

Name: Current ratio is computed by:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Current ratio is a financial ratio that measures the ability of a company to meet its short-term obligations. It is calculated by dividing current assets by current liabilities. Therefore, option B (current assets / current liabilities) is the correct choice. Option A represents the inverse calculation, while options C and D do not involve calculating the current ratio at all.

Current Ratio Is Computed By