Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. what does a current ratio of 2.5 times represent.

What does a current ratio of 2.5 times represent. For every $1 in...

50.1K

Verified Solution

Question

Accounting

What does a current ratio of 2.5 times represent.
For every $1 in assets the company has $2.50 in liabilities.
For every $1 in current liabilities the company has $2.50 in current assets, not including inventory.
For every $1 in current liabilities the company has $2.50 in current assets.
For every $1 in liabilities the company has $2.50 in total assets.
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Do you think buying and selling for a profit is morally good or bad? Put yourself...

Finance
Q

Three molecules have similar electron domains, but different molecular shapes. Why? The ________ hydrogen orbital overlaps with...

Chemistry
Q

Write a program using a Scanner that asks the user for a number n between 1...

Programming
Q

do you think virtual leaddership requires a different skill set than traditional leadership? why or why not?

General Management
Q

3. McCormick & Company is considering establishing new products in a new factory in Largo, Maryland....

Accounting
Q

The diagram below illustrates a process that can occur during cell division and results in...

Biology
Q

A wedge free to move of mass M has one face making an angle a...

Physics
Q

You intend to estimate a population mean with a confidence interval. You believe the population...

Basic Math
Q

The Addy Company uses a weighted-average process costing system. The following data are...

Accounting
Q

Mixed costs have characteristics of both: a. sunk costs and replacement costs. b. opportunity costs...

Accounting
Q

The present value of 568,000 to be received in two years, at 12% compounded annually,...

Accounting
Q

Provided are links to the present and future value tables: (PV of $1, FV of...

Accounting