A Current Ratio of 2

question 99

Multiple Choice

A current ratio of 2.00 indicates that the company has $2 of:

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

---

Definitions:

FTC

The Federal Trade Commission, a U.S. government agency aimed at protecting consumers and ensuring a strong competitive market by enforcing antitrust and consumer protection laws.

Celler-Kefauver

A United States antitrust law passed in 1950, amending the Clayton Act to prevent corporate acquisitions that could reduce competition.

European Commission

An institution of the European Union responsible for proposing legislation, implementing decisions, upholding the EU treaties, and managing the day-to-day business of the EU.

Boeing

An American multinational corporation that designs, manufactures, and sells airplanes, rotorcraft, rockets, satellites, and telecommunications equipment globally.