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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Definitions:

Like Terms

Algebraic terms that have the same variable parts and powers.

Collect

Refers to gathering or bringing things together from multiple sources.

Like Terms

Terms in an algebraic expression that have the same variables raised to the same power, which can be combined or simplified.

Operation Indicated

The process of performing the mathematical operation (such as addition, subtraction, multiplication, or division) as specified by the given problem.