The current ratio is
a. | used to evaluate a company's liquidity and short-term debt paying ability. |
b. | is a solvency measure that indicated the margin of safety of a noteholder or bondholder. |
c. | calculated by dividing current liabilities by current assets. |
d. | calculated by subtracting current liabilities from current assets. |
Answer
a. | used to evaluate a company's liquidity and short-term debt paying ability. |