Multiple choice

Current ratio is the part of

  1. profit & loss account ratio

  2. combined ratio

  3. balance sheet ratio

  4. trading account ratio

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

 Right answer, because current ratio is the part of balance sheet ratio and we will find all items to calculate the current asset from balance sheet only. So this is the main reason why Current ratio is the part of balance sheet. Thus, it is the right answer.