Which of the following is true regarding the relationship between the current ratio and the acid-test ratio?

Multiple Choice

The current ratio will always be equal to or larger than the acid-test ratio for a specific company.

The acid-test ratio will always be equal to or larger than the current ratio for a specific company.

Either the current ratio or the acid-test ratio could be larger for a specific company.

One ratio will always exceed 1.0, while the other will always be less than 1.0.