The current ratio measures:
✓ Correct Answer: Option B
Current ratio = Current Assets / Current Liabilities. A ratio > 1 suggests the company can cover short-term obligations.
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This 1-level CPA Exam Prep question from the Financial Accounting (FAR) topic is part of BrainForge Quiz's free exam preparation library. Each question includes the correct answer and a detailed explanation to help you understand the underlying concept, not just memorize the answer.
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