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What does the current ratio measure?
  • a)
    Profitability
  • b)
    Efficiency
  • c)
    Liquidity
  • d)
    Financial leverage
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
What does the current ratio measure?a)Profitabilityb)Efficiencyc)Liqui...
The current ratio measures liquidity. It compares current assets to current liabilities and indicates the company's ability to meet its short-term obligations. A higher current ratio suggests that the company has sufficient current assets to cover its current liabilities and is therefore more liquid.
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What does the current ratio measure?a)Profitabilityb)Efficiencyc)Liquidityd)Financial leverageCorrect answer is option 'C'. Can you explain this answer?
Question Description
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