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Jill's Business Has Current Assets of $50,000 and Current Liabilities

Question 23

Multiple Choice

Jill's business has current assets of $50,000 and current liabilities of $25,000.Which statement is true about the company's current ratio?


A) The ratio is 50% and is acceptable for most industries.
B) The ratio is 2 and is acceptable for most industries.
C) The ratio is $25,000 and is not acceptable for most industries.
D) Current ratio can not be determined from the information given.

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