Which of the following statements is an accurate interpretation of the current ratio?
A) A current ratio of 0.60 or lower is a good,safe ratio.
B) A current ratio below 1.00 is considered a good,safe ratio.
C) A current ratio of 2.0 indicates a very strong ability to pay current liabilities.
D) A current ratio of 1.5 or higher is considered a high-risk ratio.
Correct Answer:
Verified
Q68: Below is a list of various
Q69: The following contains information from the
Q70: Which of the following does the current
Q71: Which of the following does the debt
Q72: What is the key distinction between current
Q74: Prepaid rent is usually a non-current asset.
Q75: The current ratio is a measure of
Q76: Which of the following statements is an
Q77: Swan Song's adjusted trial balance as
Q78: Below is a list of various
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents