Which of the following would be considered the weakest current ratio?
A)0.35
B)0.80
C)1.35
D)2.30

Question

Quizplus · Accepted Answer

A current ratio of 0.35 indicates that the company has only $0.35 in current assets to cover each $1 of current liabilities, which is considered weak. A current ratio of 0.80, 1.35 or 2.30 indicate that the company has more current assets than current liabilities, which is a better situation in terms of liquidity.

Which of the Following Would Be Considered the Weakest Current