Which of the following statements is correct?

Multiple Choice

A current ratio of $1\mathrm{.}60$ means the company's current assets are probably not sufficient to pay its current liabilities.

The separate entity assumption requires that the financial activities of the owners of a company be reported on the company's balance sheet.

The cost principle states that recording activities at cost will result in the balance sheet representing the true value of the company.

A transaction is recorded if it has a measurable financial effect on the assets, liabilities or stockholders' equity of a business.