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The current ratio is equal to which of the following formulas?
Question

The current ratio is equal to which of the following formulas?

A.

Current Assets / Current Liabilities

B.

Total Assets / Total Liabilities

C.

Total Liabilities / Total Assets

D.

(Assets - Liabilities) / Total Liabilities

E.

None of the above

Correct option is A

Current Ratio = Current Assets / Current Liabilities, which measures a company's short-term financial health and liquidity

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