A Company with a Current Ratio of 1

Multiple Choice

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

A) has $1.90 of quick assets to pay each $1 of current liabilities.
B) has $1.90 of current assets to pay each $1 of current liabilities.
C) has $1.00 of quick assets for every $1.90 of current liabilities.
D) has $1.00 of current assets for every $1.90 of current liabilities.