What is most likely to have a ratio of 1.86 times?
A) the current ratio
B) the profit margin on revenue
C) the return on revenue ratio
D) the average collection period

Question

Quizplus · Accepted Answer

The current ratio, which compares a company's current assets to its current liabilities, is most likely to have a ratio of 1.86 times, indicating that the company has 1.86 times more current assets than liabilities. This is a common financial metric used to assess a company's liquidity.

What Is Most Likely to Have a Ratio of 1