Current Ratio is calculated by which of the following formula?

Liquid Assets/Current Assets Fixed Assets/Current Assets Current Assets/Current Liabilities Liquid Assets/Current Liabilities

Current Assets/Current Liabilities

Current ratio is the proportion of current assets to current liabilities i.e. Current assets/Current Liabilities Current assets include current investments, inventories, trade receivables (debtors and bills receivables), cash and cash equivalents, short-term loans and advances and other current assets such as prepaid expenses, advance tax and accrued income, etc. Current liabilities include short-term borrowings, trade payables (creditors and bills payables), other current liabilities and short-term provisions.