The rule of thumb for evaluating current ratio is that the minimum acceptable ratio is:
A) 3.0.
B) 1.0.
C) 2.0.
D) 4.0.

Name: The rule of thumb for evaluating current ratio is that the minimum acceptable ratio is: A) 3.0. B) 1.0. C) 2.0. D) 4.0.
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Quizplus · Accepted Answer

The minimum acceptable current ratio is generally considered to be 2.0, indicating that a company has twice as many current assets as current liabilities, which suggests good short-term financial health.

The Rule of Thumb for Evaluating Current Ratio Is That