Our Harmony lists current assets of $600,000 on its balance sheet.It lists current liabilities of 4288,000.Its current ratio is 2.08.This means:
A) For every $1.00 of current assets it has $2.08 of current liabilities.
B) For every $1.00 of buildings and equipment it has $2.08 of debt
C) For every $1.00 of current liabilities it has $2.08 of current assets.
D) For every $1.00 of accounts payable it has $2.08.
Correct Answer:
Verified
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