Question
Which of the following statements is an accurate interpretation of the current ratio? A current ratio of 2.0 indicates strong ability to pay current liabilities.
Which of the following statements is an accurate interpretation of the current ratio?
A current ratio of 2.0 indicates strong ability to pay current liabilities.
A current ratio of 1.5 or higher is considered a high-risk ratio.
A current ratio below 1.00 is considered a good and safe ratio.
A current ratio of 0.60 or lower is a good and safe ratio.
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Financial Accounting Information for Decisions
Authors: John Wild
7th edition
78025893, 978-0078025891
