Question

Q.2. Current Ratio is :
(A) 0
Solvency Ratio
(B) O Liquidity Ratio
(C)
Activity Ratio
(D) O Profitability Ratio​

Answer 1

Answer:

B ) Liquidity Ratio

Explanation:

The current ratio is a liquidity ratio that measures whether a firm has enough resources to meet its short-term obligations. It compares a firm's current assets to its current liabilities, and is expressed as follows:

current ratio = Current Assets

_____________

current liabilities