A current ratio above 2.00 would indicate that a company has:
A) $2 of current liabilities for every $1 of current assets.
B) $2 of total assets for every $1 of current liabilities.
C) at least $2 of current assets for every $1 of current liabilities.
D) excellent cash flow.

Question

Quizplus · Accepted Answer

A current ratio above 2.00 indicates that the company has at least $2 of current assets for every $1 of current liabilities, reflecting its ability to cover its short-term obligations with its short-term assets.

A Current Ratio Above 2