A Company with a Current Ratio of 1

question 23

Multiple Choice

A company with a current ratio of 1.90 means that the company:

• A)has $1.90 of quick assets to pay each $1 of current liabilities.
• B)has $1.90 of current assets to pay each $1 of current liabilities.
• C)has $1.00 of quick assets for every $1.90 of current liabilities.
• D)has $1.00 of current assets for every $1.90 of current liabilities.