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What is current ratio?
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Answer Posted / vivek mohan nair
yes the above formaula for current ratio is correct. But
the question is what is current ratio?
ans:A liquidity ratio that measures a company's ability to
pay short-term obligations.
The Current Ratio formula is:Current assets/ current
liablities
Also known as "liquidity ratio", "cash asset ratio"
and "cash ratio".
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