If a Firm Has a Current Ratio of 2

question 110

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

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Definitions:

Memory

The cognitive process of encoding, storing, and retrieving information, critical for learning and recalling past experiences.

Process

Refers to a series of actions, changes, or functions bringing about a result or outcome, often detailed in steps or stages.

Significance

The quality of being worthy of attention; importance.

Never Marrieds

Refers to individuals who have never entered into a legally recognized marriage or equivalent partnership by choice or circumstance.