Question: The current ratio: Multiple Choice Is used to help assess a company's ability to pay its debts in the near future. Is calculated by dividing

The current ratio:
Multiple Choice
Is used to help assess a company's ability to pay its debts in the near future.
Is calculated by dividing current assets by equity.
Measures the effect of operating income on profit.
Is used to measure the relationship between assets and long-term debt.
Is used to measure a company's collection period.

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