Multiple Choice
Which of the following statements is true about a current ratio of 1.5?
A) There is $1.50 of current assets available to pay every dollar of current debt.
B) There is $1.50 of owner's equity available to pay every dollar of total debt.
C) The current liabilities are to be repaid at 1.5 times their value.
D) The current liabilities are 1.5 times of current assets.
Correct Answer:
Verified
Correct Answer:
Verified
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