If You Have Current Assets of $20,000 and Current Liabilities

question 58

Short Answer

If you have current assets of $20,000 and current liabilities of $10,000,then you
(a)have a current liquidity ratio of 2.
(b)are in poor shape with a liquidity ratio of 0.5.
(c)may have trouble paying your bills depending on their due dates.
(d)are overextended by $10,000