If the current ratio was 1.95 in 2012 and is 1.86 in 2013, how would managers interpret this change?

a) A current ratio of 1.95 is worse than a 1.86 ratio.

b) Both ratios are unacceptable because they are greater than 1.0.

c) A current ratio of 1.95 means that there is $1.95 of total assets for each dollar of liabilities.

d) The current ratio has worsened during the year, but it appears to be still acceptable.

Answer rating: 100% (QA)

Solution If the current ratio was 195 in 2012 and is 186 in 2013 then managers would interpret this ... View the full answer