How "Current Ratio" is calculated? 1. Current Assets/Current Liabilities or 2. Current Liabilities/Current Assets

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In Current Ratio, Current Assets are compared with?
Posted by:
SREEDEVI SUNILKUMAR
14-April-2014

Financial Reporting

Question added by Deleted user
Date Posted: 2013/06/05

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9 Answers

by Ali Iftikhar , Assitant Manager Finance , National Logistics Cell

Current Ratio = Current Assets / Current Liabilities

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by Frank Avitia , Managing Director , AIS Investment Services

Current Assets/Current Liabilities Current ratio is the ratio of current assets of a business to its current liabilities.
It is the most widely used test of liquidity of a business and measures the ability of a business to repay its debts over the period of next12 months.

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by umer zubair , international sales executive , digital globe service

CURRENT ASSETS/CURRENT LIABILITIES

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Dilshod Gaibnazarov

by Dilshod Gaibnazarov , Financial Accounting Manager , Logistics and transportation company

current ratio=current assets/current liabilites also usefull acid ratio=(cash +Accont receivable+short-term investment)/current liabilities

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by Salman Ali , Senior Manager Finance , Pakistan Mercantile Exchange Limited

1.
Current Assets/Current Liabilities

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by manaf almas , Auditor , DAR AL NUZUM PUBLIC ACCOUNTANTS

current assets /current liabilities

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Shafiulla Mohammad

by Shafiulla Mohammad , Customer Service Adviser , University of Bedfordshire

Current Ratio = Current Assets/ Current Liabilities. The answer is option1.

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by Muhammad Afaq , SENIOR FINANCIAL ACCOUNTANT , United Eddy Company (United Yousef M. Naghi Group)

Option2.
It is most significant ones, which determine the company's ability to pay its debt on maturity.

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Muhammad Yaseen Islam

by Muhammad Yaseen Islam , Accounts & Finance Manager , Alsale Eastern Company Ltd

Option one is the right answer.

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