Question : Which of the following ratio is the "Current Ratio"?
Option 1: Solvency Ratio
Option 2: Profitability Ratio
Option 3: Activity Ratio
Option 4: Liquidity Ratio

Question

Question : Which of the following ratio is the "Current Ratio"?

Option 1: Solvency Ratio

Option 2: Profitability Ratio

Option 3: Activity Ratio

Option 4: Liquidity Ratio

Team Careers360 · Accepted Answer

Correct Answer: Liquidity Ratio

Solution : The current ratio is a liquidity ratio that measures a company's ability to pay short-term or one-year obligations.
Hence option 4 is the correct answer.

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Question : Which of the following ratio is the "Current Ratio"?Option 1: Solvency RatioOption 2: Profitability RatioOption 3: Activity RatioOption 4: Liquidity Ratio

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Question : Which of the following ratio is the "Current Ratio"?
Option 1: Solvency Ratio
Option 2: Profitability Ratio
Option 3: Activity Ratio
Option 4: Liquidity Ratio