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

Question

Quizplus · Accepted Answer

A current ratio above 2.00 means the company has more than $2 of current assets for every $1 of current liabilities, indicating strong short-term financial health.

A Current Ratio Above 2