Current Ratio Indicates Liquidity Steps:

• Recall current ratio = current assets / current liabilities; higher ratio means better ability to meet short-term obligations (liquidity).
• Compare ratios: X's 2:1 (2.0) > Y's 1.5:1 (1.5), so X has superior liquidity.
• Evaluate options: Check if comparison directly supports absolute claims about liabilities, assets, or inventory.
• Conclude: Ratios alone reveal relative liquidity, not absolute amounts; no option matches.

Why the correct option is correct:
None of the options is correct; comparison shows X has more liquidity than Y (higher ratio per accounting definition).

Why the others are wrong:

• A: Ratios don't specify absolute liabilities; X could have more liabilities if assets are proportionally higher.
• B: Incorrect; Y's lower ratio means less liquidity than X.
• C: No info on absolute assets; Y could have more but lower ratio due to even higher liabilities.
• D: Inventory unrelated; no data provided.

Final answer: None of the above