Historically, It Was Thought That the Current Ratio Should Be

Multiple Choice

Historically, it was thought that the current ratio should be ________, but more recently, many firms that are financially strong operate with current ratios of ________.

A) at least 10:1; less than 5:0
B) more than 7:1; 2.0
C) less than 5:1; more than 10:1
D) 2:1; less than 2:1
E) 3:1; less than 5:1