State whether the following statements are true or false with reasons: The current ratio measures a Company's ability to pay its long-term liabilities with its short-term assets.

False. The current ratio measures a company's ability to pay off its short-term liabilities with its short-term assets . It is calculated as Current Assets / Current Liabilities. It is a liquidity ratio, indicating the company's ability to meet its immediate financial obligations. Long-term liabilities are assessed using solvency ratios like the debt-to-equity ratio or debt-to-asset ratio.