A Current Ratio of 2 Means

question 59

Multiple Choice

A current ratio of 2 means

• A) 2% from each paycheck is available for savings.
• B) The minimum payment for a credit card is 2% of the balance.
• C) 2 months of living expenses are available in case of emergency.
• D) Net worth equals 2 times the amount of debt.
• E) $2 of liquid assets are available for every $1 in current liabilities.

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Definitions:

Strategic Advantage

an edge that an organization gains over its competitors through strategies such as cost leadership, differentiation, or rapid response to market changes.

RAM

Random Access Memory (RAM) is a type of computer memory used to store working data and machine code currently in use. It allows data items to be read or written in almost the same amount of time irrespective of the physical location of data inside the memory.

Binary Form

The form in which data and instructions can be read by the CPU—only 0s and 1s.

CPU

The Central Processing Unit (CPU), often simply referred to as the processor, is the brain of the computer where most calculations take place, rephrased as executing and interpreting instructions from the computer's hardware and software.