Which of the Following Statements About Current Ratios Is Most

question 59

Multiple Choice

Which of the following statements about current ratios is most appropriate?

• A) The determination of whether a current ratio is acceptable is best made by reference to industry norms.
• B) A current ratio less than 1.5 is unacceptable.
• C) A current ratio greater than 1.0 is excellent.
• D) The determination of whether a current ratio is acceptable is best made by reference to industry norms, a current ratio less than 1.5 is unacceptable and a current ratio greater than 1.0 is excellent.

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