Multiple Choice
Irma's current ratio is 2.5. This means that
A) for every dollar of current assets, Irma has $2.50 in current liabilities.
B) for every dollar of current liabilities, Irma has $2.50 in current assets.
C) Irma has enough cash to pay her debts for the next 2.5 years.
D) Irma can borrow 2.5 times her annual sales.
Correct Answer:
Verified
Correct Answer:
Verified
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