Under the Rule of Thumb, a good current ratio is:

A. 4 : 1
B. 12 : 1
C. 2 : 1
D. 6 : 1

🧠 Explanation:

Under the Rule of Thumb, a good current ratio is 2:1, indicating a company can cover liabilities twice over with current assets. For accounting or finance students, understanding the current ratio highlights its role in assessing liquidity, making it a key topic for studying financial health and business stability analysis.