Answered

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What two accounts are needed to calculate a firm's current ratio?

A. accounts receivable and accounts payable
B. cash and inventory
C. current assets and current liabilities
D. owners' equity and revenue

Sagot :

GinnyAnsweridn

Final answer:

The current ratio of a firm is calculated using current assets and current liabilities.


Explanation:

Current assets and current liabilities are the two accounts needed to calculate a firm's current ratio. Current assets include cash, investments, accounts receivable, and prepaid expenses, while current liabilities encompass accounts payable, accrued expenses, and notes payable.


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