Multiple Choice
Which of the following statements is true?
A) The current ratio measures the ability of a company to pay its current debts.
B) The current ratio is calculated by dividing current liabilities by current assets.
C) The current ratio is calculated by dividing current assets by total assets.
D) The current ratio is calculated by dividing total assets by current assets.
Correct Answer:
Verified
Correct Answer:
Verified
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