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What is the primary purpose of calculating the current ratio?

Practice Questions

1 question
Q1
What is the primary purpose of calculating the current ratio?
  1. To assess profitability
  2. To evaluate liquidity
  3. To measure solvency
  4. To analyze efficiency

Questions & Step-by-step Solutions

1 item
Q
Q: What is the primary purpose of calculating the current ratio?
Solution: The current ratio measures a company's ability to pay short-term obligations, thus evaluating liquidity.
Steps: 0

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