The current ratio measures:
✓ Correct Answer: Option B
Current ratio = current assets / current liabilities. >1 suggests sufficient short-term liquidity. 1.5-2 typical for healthy companies. Too high may indicate inefficient asset use.
Current ratio = current assets / current liabilities. >1 suggests sufficient short-term liquidity. 1.5-2 typical for healthy companies. Too high may indicate inefficient asset use.