Which of the following statements is most correct regarding the current ratio for a firm that uses industry averages and a peer benchmark as their comparison?
A.) Firms should attempt to maintain a current ratio that is below 0.5.
B.) Firms should always exceed both the industry average and the peer benchmark current ratio.
C.) Firms should strive to maintain a current ratio that seems reasonable when compared to an industry average and a peer benchmark.
D.) Firms should strive to maintain a current ratio of at least 2.0.
Answer: C