A company with a high current ratio is said to have:
A) Few liquid assets
B) High current liabilities and low current assets
C) High current assets and low current liabilities
D) High long-term borrowing

Question

Quizplus · Accepted Answer

A high current ratio indicates that a company has a higher amount of current assets compared to its current liabilities. This means that the company has enough liquid assets to pay off its short-term obligations.

A Company with a High Current Ratio Is Said to Have