The current ratio is usually satisfactory at 2:1 or higher

Name: The current ratio is usually satisfactory at 2:1 or higher - that is,if current assets more than double current liabilities.
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Question

The current ratio is usually satisfactory at 2:1 or higher - that is,if current assets more than double current liabilities.

Quizplus · Accepted Answer

A current ratio of 2:1 or higher indicates that a company has sufficient current assets to meet its current liabilities, which is generally considered satisfactory. Therefore, the statement is true.