Current assets divided by current liabilities is the:Multiple ChoiceCurrent ratio.Quick ratio.Debt ratio.Liquidity ratio.Solvency ratio.
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Solution 1
Break Down the Problem
- Identify the terms provided in the question.
- Understand the financial metrics mentioned.
Relevant Concepts
- Current Ratio: This is calculated as Current Assets / Current Liabilities. It measures a company's ability to cover its short-term obligations.
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ratios measure a company's ability to turn assets into cash to pay its short-term debt.
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