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

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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.
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