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1) current ratio = current assets / current liability
How and why such a doubt! A senior pro like you should not have such doubts. IT IS NO DOUBT CA/CL
Current Ratio is CA:CL that means you should have a adequate Current Assets to cover the Current Liabilities in case of winding up of a firm.
The normal acceptable Current ratio is2.
The Correct Answer is1. Current Assets / Current Liabilities
current assets/current liabilities=current ratio
ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities (debt and payables) with its short-term assets (cash, inventory, receivables). The higher the current ratio, the more capable the company is of paying its obligations
(1) C.A/C.L is the correct answer
Current Assets mins Current Liablilities is called Current asset
As defined, the answer is (1) Current assets/ Current Liability
the answer is Current assets over Current liablities
no ithe current assest/current liabilities is the correct answer
Current Ratio = Current Asset / Current Liabilities it means number of Assets available to pay your liabilities in the future.
Current assets/ Current Liability = current ratio
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