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

The current ratio is

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

Answer

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