The Directors of Brasenose Forceps Limited Have Taken Steps During

Multiple Choice

The directors of Brasenose Forceps Limited have taken steps during the 20X7 financial year to improve the company's quick and current ratios.Their target for the quick ratio was 0.80 and for the current ratio it was 1.75. Extracts from the company's statement of financial position at the 20X7 year end were as follows:
Which one of the following statements is correct?

A) The actual quick ratio is better than target, but the actual current ratio is worse than target.
B) The actual quick ratio is worse than target, but the actual current ratio is better than target.
C) Both the actual quick and current ratios are better than target.
D) Both the actual quick and current ratios are worse than target.