If the Current Ratio for a Company Is 2

question 72

Multiple Choice

If the current ratio for a company is 2.5, this means that:

• A) the company is able to pay all its debts immediately.
• B) its current income is 250% of its previous income.
• C) if the company had $100 of current liabilities, it also has $250 of current assets.
• D) its debt is 2.5 times the industry average.

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