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15 January, 17:51

The current ratio is calculated by dividing current liabilities by current assets.

a. True

b. False

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Answers (1)
  1. 15 January, 18:04
    0
    The answer is false. Current ratio is a ratio calculated by dividing current assets by current liabilities. It specifies the range to which existing liabilities are sheltered by assets likely to be converted into money in the coming future. Current ratio is not calculated by dividing current liabilities by current assets.
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