Question: The current ratio is a . computed by subtracting current liabilities from current assets b . used to evaluate a company's liquidity and short -

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

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