Final answer:
The numerator in the current ratio calculation is c. Current Assets, which are compared to current liabilities to determine a company's short-term financial health.
Step-by-step explanation:
The correct answer to the question is c. Current Assets. In the calculation of the current ratio, we compare the current assets to current liabilities to assess a company's short-term financial health. The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year. It is calculated by dividing current assets by current liabilities (Current Ratio = Current Assets / Current Liabilities). Current assets are items such as cash, inventory, and receivables that are expected to be converted into cash within a year. This ratio is an indicator of the financial strength of a company; a higher current ratio suggests that the company is more capable of paying its obligations.