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प्रश्न
Current Ratio is a type of ______.
पर्याय
Solvency Ratio
Liquidity Ratio
Activity Ratio
Profitability Ratio
MCQ
रिकाम्या जागा भरा
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उत्तर
Current Ratio is a type of liquidity ratio.
Explanation:
The Current Ratio is a short-term liquidity ratio that evaluates a business’s ability to pay off its current obligations (due within one year) using its current assets. It is calculated by dividing Current Assets by Current Liabilities and focuses strictly on immediate financial health and cash availability. While solvency ratios track long-term debt capacity, the current ratio is used exclusively to analyse short-term liquidity.
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