Which of the Following Statements Is Correct

Multiple Choice

Which of the following statements is correct?

A) A current ratio of 1.60 means the company's current assets are probably not sufficient to pay its current liabilities.
B) The separate entity assumption requires that the financial activities of the owners of a company be reported on the company's balance sheet.
C) The cost principle states that recording activities at cost will result in the balance sheet representing the true value of the company.
D) A transaction is recorded if it has a measurable financial effect on the assets,liabilities or stockholders' equity of a business.