Question: Assume that the industry average for the current ratio is 2.6 for 2021. Compare this industry average with the current ratios of Star Company and

Assume that the industry average for the current ratio is 2.6 for 2021. Compare this industry average with the current ratios of Star Company and Nova Company, below: Star Company's current ratio for 2021 is 2.4. Nova Company's current ratio for 2021 is 2.0. What is the correct interpretation of these ratios? Multiple Choice Nova Company is better able to pay its current liabilities as they come due than Star Company but is less able to pay its current liabilities than the average company in the industry. Nova Company is better able to pay its current liabilities as they come due than Star Company and is better able to pay its current liabilities than the average company in the industry. Star Company is better able to pay its current liabilities as they come due than Nova Company but is less able to pay its current liabilities than the average company in the industry. Star Company is better able to pay its current liabilities as they come due than Nova Company and is better able to pay its current liabilities than the average company in the industry

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