What is the current ratio?
A) 5.0 to 1.
B) 1.5 to 1.
C) .7 to 1.
D) .8 to 1.

Name: What is the current ratio? A) 5.0 to 1. B) 1.5 to 1. C) .7 to 1. D) .8 to 1.
Brand: Quizplus
Rating: 4.8 (44 reviews)

Question

Quizplus · Accepted Answer

The current ratio is calculated by dividing current assets by current liabilities. A ratio of 1.5 to 1 indicates that the company has $1.50 in current assets for every $1.00 of current liabilities, which is a common benchmark for financial health.

What Is the Current Ratio