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Commerce · Q20

Accounting

Graduate and Post Graduate · Commerce · question 20

Q20

Current ratio =

A.
Quick assets/Current liabilities
B.
Current assets/Current liabilities
Answer
C.
Debt/Equity
D.
Current assets/Equity

Answer: Option B

Solution

Answer: Option B
Solution:
Current ratio = Current assets/Current liabilities. Current ratio is a comparison of current assets to current liabilities, calculated by dividing your current assets by your current liabilities.
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