The current ratio can help users of financial statements assess a business entity\'s liquidity. True False Solution The current ratio can help users of financial statements assess a business entity\'s liquidity. True Note : Financial Ratio are the indicator to analyse business entity financial performance, Liquidity Ratio enable the fiinancial statement user to evaluate companies ability to meet current obligation, it can be measure through Current Ratio & Quick Ratio. Therefore current ratio can help users of financial statements assess a business entity\'s liquidity.