How "Current Ratio" is calculated?
1. Current Assets/Current Liabilities or 2. Current Liabilities/Current Assets

Question

Ali Iftikhar · Answer

Current Ratio = Current Assets / Current Liabilities

Frank Avitia · Answer

Current Assets/Current Liabilities Current ratio is the ratio of current assets of a business to its current liabilities.
It is the most widely used test of liquidity of a business and measures the ability of a business to repay its debts over the period of next12 months.

umer zubair · Answer

CURRENT ASSETS/CURRENT LIABILITIES

Dilshod Gaibnazarov · Answer

current ratio=current assets/current liabilites also usefull acid ratio=(cash +Accont receivable+short-term investment)/current liabilities

Salman Ali · Answer

1.
Current Assets/Current Liabilities

manaf almas · Answer

current assets /current liabilities

Shafiulla Mohammad · Answer

Current Ratio = Current Assets/ Current Liabilities. The answer is option1.

Muhammad Afaq · Answer

Option2.
It is most significant ones, which determine the company's ability to pay its debt on maturity.

Muhammad Yaseen Islam · Answer

Option one is the right answer.

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How "Current Ratio" is calculated? 1. Current Assets/Current Liabilities or 2. Current Liabilities/Current Assets

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