If a Firm Has a Current Ratio of 2

question 110

Multiple Choice

If a firm has a current ratio of 2.5,it means that for every $2.50 in _____ it has $1.00 in

• A)current assets; current liabilities
• B)total assets; total liabilities
• C)current assets; total liabilities
• D)total assets; current liabilities

---

Definitions:

Ability

The possession of the means or skill to do something; often considered in economic terms as related to productivity and employment.

Effort

The use of physical or mental energy to accomplish a task or achieve a goal.

Chance

The occurrence of events in the absence of any obvious intention or cause.

Labor Unions

Organizations that represent the collective interests of workers in negotiations with employers over wages, benefits, and working conditions.