A Current Ratio of 2

Multiple Choice

A current ratio of 2.5 means that for every dollar of:

A) accounts payable,there is $2.50 of cash.
B) current liabilities,there is $2.50 of current assets.
C) current assets,there is $2.50 of current liabilities.
D) total liabilities,there is $2.50 of current liabilities.