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Maria's Current Ratio Is 2.5.This Means That

Question 65

Multiple Choice

Maria's current ratio is 2.5.This means that:


A) for every rand of current assets, Maria has R2.50 in current liabilities.
B) for every rand of current liabilities, Maria has R2.50 in current assets.
C) Maria has enough cash to pay her debts for the next 2.5 years.
D) Maria can borrow 2.5 times her annual sales.

Correct Answer:

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