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Question : ---------------------ratio explains the relationship between current assets and current liabilities of a business.

Option 1: Liquid ratio

Option 2: Current ratio 

Option 3: Current assets ratio 

Option 4: Current liabilities ratio 

 


Team Careers360 2nd Jan, 2024
Answer (1)
Team Careers360 21st Jan, 2024

Correct Answer: Current ratio


Solution : Answer = Current ratio.

The current ratio measures the relationship between a company's current assets and current liabilities, providing insight into its short-term liquidity and ability to cover short-term obligations. A higher current ratio indicates a healthier financial position, while a lower ratio may signal potential liquidity challenges or inefficiencies in managing current assets and liabilities.
Hence, the correct option is 2,

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