Accounting · Ratio Analysis
How is the Current Ratio of a business calculated?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1By dividing Gross Profit by Net Sales
- 2By dividing Current Liabilities by Current Assets
- 3By dividing Current Assets by Current Liabilities✓
- 4By dividing Liquid Assets by Current Liabilities
Correct answer
By dividing Current Assets by Current Liabilities
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