A Company with a Quick Ratio of 1

Multiple Choice

A company with a quick ratio of 1.90 means that the company:

A) has $1.00 in quick assets for every $1.90 in current liabilities.
B) has $1.90 in quick assets for every $1.00 in current liabilities.
C) could not pay off all of its current liabilities using quick assets.
D) would have to use inventory to help pay off its current liabilities.