23Sep
What Is the Current Ratio? Formula and Definition
The current ratio of such entities significantly alters as the volume and frequency of their trade move up and down. In short, these entities exhibit different current ratio number in different parts of the year which puts both usability and reliability of the ratio in question. Current liabilities include accounts payable, wages, accrued expenses, accrued interest and short-term debt. A higher current ratio is always more favorable than a lower current ratio because it shows the company can more easily...
