What is the current ratio?

What is the current ratio?
A . The current ratio is a measure of a company’s ability to cover medium term obligations Current ratio = current assets/current liabilities
B. The current ratio is a measure of a company’s ability to cover long term obligations Current ratio = current assets/current liabilities
C. The current ratio is a measure of a company’s ability to cover immediate obligations Current ratio = current assets/current liabilities
D. The current ratio is a measure of a company’s ability to cover short term obligations Current ratio = current assets/current liabilities

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Answer: D