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Answer is Wrong!
Answer is Right!
The ideal current ratio is 2:1. This means that a company should have $2 in current assets for every $1 in current liabilities. A current ratio of 2:1 indicates that a company has a good liquidity position and is able to meet its short-term obligations.
A current ratio of less than 1:1 indicates that a company may have difficulty meeting its short-term obligations. A current ratio of more than 3:1 may indicate that a company is not using its assets efficiently.
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