As a general rule,financial analysts suggest that a small business maintain a(n)________ ratio of at least 2:1.
A)debt-to-net worth
B)current
C)inventory turnover
D)quick

Question

Quizplus · Accepted Answer

The current ratio measures a small business's ability to meet short-term obligations. A ratio of 2:1 means that the business has twice as many current assets as current liabilities, indicating a healthy liquidity position. A higher current ratio suggests better liquidity and the ability to meet obligations as they come due.

As a General Rule,financial Analysts Suggest That a Small Business