Current Ratio Quiz

 The Current Ratio measuresa) Liquidityb) Profitabilityc) Investments #AccountingMCQ

Current Ratio Quiz Explained

Current Ratio is also known as liquidity ratio as it compares an entity’s current assets with its current liabilities. It is the measure of liquidity as it ascertains a concern’s ability to pay its obligations or debts over the next 12 months.

So, the correct answer of this ration accounting quiz is Liquidity, as the Current Ration is the measure of liquidity.

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