Multiple Choice
Which of the following statements is an accurate interpretation of the current ratio?
A) A current ratio of 1.5 or higher is considered a high-risk ratio.
B) A current ratio below 1.00 is considered a good, safe ratio.
C) A current ratio of 2.0 indicates very strong ability to pay current liabilities.
D) A current ratio of 0.60 or lower is a good, safe ratio.
Correct Answer:
Verified
Correct Answer:
Verified
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