If a company has a current ratio of _________, it should be financially sound.
A) 1:1
B) 2:1
C) 1:2
D) 0.50

Name: If a company has a current ratio of _________, it should be financially sound. A) 1:1 B) 2:1 C) 1:2 D) 0.50
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Question

Quizplus · Accepted Answer

A current ratio of 2:1 is generally considered a healthy liquidity ratio, indicating that the company has twice as many current assets as it does current liabilities, suggesting good financial health.

If a Company Has a Current Ratio of _________, It