A Current Ratio of 2:1 Means That for Every $1

question 36

True/False

A current ratio of 2:1 means that for every $1 of current assets, the company has $2 of current liabilities.

---

Definitions:

Leukocytes

White blood cells that are part of the immune system, responsible for defending the body against infectious disease and foreign materials.

Erythrocytes

Red blood cells that transport oxygen from the lungs to tissues throughout the body and return carbon dioxide for exhalation.

Formed Elements

Cells and cell fragments in blood, including red blood cells, white blood cells, and platelets.

Plasma

The liquid component of blood that carries cells and proteins throughout the body.