Question

what do you mean by current ratio​

Answer 1

Answer:

The current ratio is a liquidity and efficiency ratio that measures a firm’s ability to pay off its short-term liabilities with its current assets. The current ratio is an important measure of liquidity because short-term liabilities are due within the next year.

FORMULA

$Current Ratio = \frac{Current Assets}{Current Liabilities}$

Answer 2

Answer:

the current ratio is a liquidity ratio that measures whether a film has enough resources to meet it's short term obligation.it compares a firm's current assests to it's current liabilities and is expressed as follows.the current ratio is an indication of a firm's liquidity