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Marni Rosenblatt
on Nov 18, 2024

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A business's current assets divided by its current liabilities is equal to its

A) current ratio.
B) working capital.
C) current net income.
D) current equity.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the operating cycle of a business, whichever is longer.

Current Liabilities

Financial obligations a company is required to pay within one year or within the normal operating cycle.

Current Ratio

A liquidity ratio that measures a company's ability to cover its short-term obligations with its short-term assets.

  • Calculate a company's current ratio and interpret its significance.
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Latifa SultanaNov 22, 2024
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