Question

In current retio current assets are compared with-
(1)gross profit
(2)current liabilities
(3)fixed assets
(3)debentures​

Answer 1

Explanation:

Current ratio = Current assets ÷ Current liabilities

Current assets include cash and cash equivalents, marketable securities, short-term receivables, inventories, and prepayments. Current liabilities include trade payables, current tax payable, accrued expenses, and other short-term obligations.

So the answer is - 2 current liabilities