A current ratio of 3:1 means
A) the company has 3 dollars of current debt to every dollar of current assets.
B) the company has 3 dollars of current assets to every 1 dollar of current debt.
C) the company has 3 dollars of current assets for every 3 dollars of current debt.
D) the company has 3 dollars of current debt to every 3 dollar of current assets.
Correct Answer:
Verified
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