The current ratio is
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a.
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used to evaluate a company's
liquidity and short-term debt paying ability.
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b.
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is a solvency measure that
indicated the margin of safety of a noteholder or bondholder.
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c.
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calculated by dividing current
liabilities by current assets.
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d.
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calculated by subtracting current
liabilities from current assets.
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Answer
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a.
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used to evaluate a company's
liquidity and short-term debt paying ability.
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