If a Firm Has a Current Ratio of 2

question 176

Multiple Choice

If a firm has a current ratio of 2.5, it means that for every $2.50 in ______ it has $1.00 in ______.

• A) total assets; total liabilities
• B) total assets; current liabilities
• C) current assets; current liabilities
• D) current assets; total liabilities

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Definitions:

Theories

Systematic frameworks for understanding the principles and structures of various phenomena, grounded in observations and evidence.

Social Life

The part of an individual's time that they spend participating in community or societal activities, or interacting with family, friends, and acquaintances outside of work or personal solitude.

Labor Process

The methods, practices, and relations involved in the production of goods and services, including the organization of work and labor relations.

Manufacturing

is the process of producing goods on a large scale using machinery, labor, and sophisticated techniques, typically within an industrial setting.