Listed below are the current ratios of four different companies.Based on these current ratios,which company is in the most liquid position?
A)2.0
B)1.8
C)2.5
D)2.1

Question

Quizplus · Accepted Answer

The current ratio is a company's current assets divided by its current liabilities.The larger the number,the greater a company's liquidity.Therefore,for Company C,this means that for every dollar of current debt,the company has $2.50 in current assets with which to pay it off.

Listed Below Are the Current Ratios of Four Different Companies