About the current ratio, The current ratio is:

About the current ratio

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Reference no: EM13825752

The current ratio is:

a. Is a solvency measure that indicated the margin of safety of a noteholder or bondholder.

b. Calculated by subtracting current liabilities from current assets.

c. Calculated by dividing current liabilities by current assets.

d. Used to evaluate a company's liquidity and short-term debt paying ability.

Reference no: EM13825752

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