If the Current Ratio, which is current assets divided by current liabilities, is greater than one, what does that indicate?

• a. It indicates that the company has fewer current assets than current liabilities or that is has poor liquidity.

• b. It indicates that the company has more current assets than current liabilities, or that it has strong liquidity.

• c. It indicates that a high percentage of total assets are financed by shareholders and/or owners equity as opposed to liabilities.

• d. It indicates that the company will have a hard time meeting its short-term obligations.