Which company has a higher degree of liquidity: Widget,with a current ratio of 2; Mouse Trap,with a current ratio of 1.7; Gadget,with a current ratio of 1.6; or Better Trap,with a current ratio of 1.5?
A)Widget
B)Mouse Trap
C)Gadget
D)Better Trap

Question

Quizplus · Accepted Answer

The higher the current ratio, the higher the degree of liquidity. Therefore, Widget with a current ratio of 2 has the highest degree of liquidity among the given companies.

Which Company Has a Higher Degree of Liquidity: Widget,with a Current