Question

current ratio:
select one:
a. assets / equity
b. current assets / current liabilities
c. debt / equity
d. sales / assets

Explanation:

The current ratio is a liquidity metric that measures a company's ability to pay short-term obligations. By definition, it is calculated as current assets divided by current liabilities. Option a is the asset-to-equity ratio, option c is the debt-to-equity ratio, and option d is the asset turnover ratio, none of which match the current ratio.

Answer:

b. Current assets / current liabilities