Series 7 - General Securities Representative Exam

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Which of the following BEST describes a company's Current Ratio

Earnings on a per share basis
A
Accounts Receivable minus Accounts Payable
B
Current assets minus current liabilities
C
Current assets divided by current liabilities
D

Explanations

The current ratio compares all of a company’s current assets to its current liabilities. The ratio is the assets divided by the liabilities

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