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The current ratio is ( 2 pts ) is a solvency measure that indicated the margin of safety of a noteholder or bondholder. calculated by

The current ratio is (2pts)
is a solvency measure that indicated the margin of safety of a noteholder or
bondholder.
calculated by subtracting current liabilies from current assets.
calculated by dividing current liabilities by current assets.
used to evaluate a company's liquidity and short-term debt paying ability:
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