The Current Ratio measures a company’s ability to pay off its short-term liabilities with its short-term assets. It is calculated as current assets divided by current liabilities. A ratio above 1 indicates that the company has more assets than liabilities due within a year.
Which ratio measures a company's ability to meet short-term obligations?
Review the verified answer and explanation for this SPSC – Sindh Public Service Commission past-paper question on CampusFin.
Question context
This question is part of 📚 General Knowledge within the broader 🌐 Current Affairs & GK subject and appears in the SPSC – Sindh Public Service Commission preparation collection. Reviewing the answer together with nearby questions helps reinforce the underlying concept and identify how it may appear in competitive exams.