The current ratio is

a. calculated by dividing current liabilities by current assets.
b. used to evaluate a company's liquidity and short-term debt paying ability.
c. used to evaluate a company's solvency and long-term debt paying ability.
d. calculated by subtracting current liabilities from current assets.

b. used to evaluate a company's liquidity and short-term debt paying ability.

Business

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What will be an ideal response?

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