Maria's Current Ratio Is 2.5.This Means That

question 106

Multiple Choice

Maria's current ratio is 2.5.This means that:

• A)for every rand of current assets, Maria has R2.50 in current liabilities.
• B)for every rand of current liabilities, Maria has R2.50 in current assets.
• C)Maria has enough cash to pay her debts for the next 2.5 years.
• D)Maria can borrow 2.5 times her annual sales.

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Definitions:

Suffix

a letter or group of letters added at the end of a word to form a new word or alter its function.

Solicit

To ask for or try to obtain something from someone.

Suffix

A set of letters placed at the end of a word to alter its meaning or convert it into another part of speech.

Pin

A small, slender piece of metal used for securing or attaching things, or as a marker.