A Current Ratio Above 2

question 22

Multiple Choice

A current ratio above 2.00 would indicate that a:

• A) company has $2 of current liabilities for every $1 of current assets.
• B) company has $2 of total assets for every $1 of current liabilities.
• C) company has $2 of current assets for every $1 of current liabilities.
• D) company has $2 of total assets for every dollar of current assets.

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