Before computing the current ratio, the accounts receivable turnover and the inventory turnover should be computed. Why?

Question:

Before computing the current ratio, the turnover and the inventory turnover should be computed. Why?

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...