Question

The formula used to calculate current ratio is
a) Current Assets / Current Liabilities b) Current Laibilities / Current Assets
c) Inventory / Current Liabilities d) Current Liabilities / Inventory
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Answer 1

Your answer is

option a)

current ratio=current assets/current liabilites

The the current ratio also known as working capital ratio

the ratio considered the weight of the total current assets versus The total current liability

it indicates the financial health of the company and how it can maximize the liquidity of its current asset to settle Dept and payable

Answer 2

Explanation:

The formula used to calculate current ratio is