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Which of the Following Does the Current Ratio Measure

Question 62

Multiple Choice

Which of the following does the current ratio measure?


A) The current ratio measures the company's overall ability to pay liabilities.
B) The current ratio measures the company's ability to pay current liabilities with current assets.
C) The current ratio measures the proportion of the company's assets that are financed with debt.
D) Both B and C are true.

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