Economics · Financial Statement Analysis - Ratio Analysis
Which financial metric is defined as the ratio of current assets to current liabilities and is considered the most commonly cited indicator of short-term solvency and working capital adequacy with an ideal benchmark of 2:1?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Quick Ratio
- 2Current Ratio✓
- 3Debt-Equity Ratio
- 4Gross Profit Ratio
Correct answer
Current Ratio
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