The current ratio of a business is computed by

The current ratio is a liquidity ratio that measures a company’s ability to pay short-term obligations, calculated as Current Assets ÷ Current Liabilities. Option B (current assets ÷ net income) is incorrect, as net income is not a component of liquidity ratios. Option C (net worth ÷ net income) relates to return on equity, not liquidity. Option D (total assets − total liabilities) calculates net worth or equity, not the current ratio. This question aligns with the Accounting and Finance category, focusing on financial statement analysis.