Antarctic Corporation currently has the following financial information:
A)2.0
B)3.0
C)4.0
D)5.0

Question

Antarctic Corporation currently has the following financial information: 
A)2.0 
B)3.0 
C)4.0 
D)5.0

Quizplus · Accepted Answer

The current ratio is calculated by dividing current assets by current liabilities. Based on the given financial information, the current ratio would be 2.0 (current assets of $400,000 divided by current liabilities of $200,000). A current ratio of 2.0 is generally considered to be a healthy ratio, indicating that the company has enough current assets to cover its current liabilities. Therefore, choice A would be the best answer.

Antarctic Corporation Currently Has the Following Financial Information