A Current Ratio Above 2

Multiple Choice

A current ratio above 2.00 would indicate that a:

A) company has $2 of current liabilities for every $1 of current assets.
B) company has $2 of current assets for every $1 of current liabilities.
C) company has $2 of total assets for every $1 of current liabilities.
D) company has $2 of total assets for every dollar of current assets.