Multiple Choice
Which of the following statements is FALSE about the current ratio?
A) Instead of using the dollar amounts,the current ratio makes it easier to compare several companies.
B) The current ratio is used to evaluate a company's ability to pay current obligations.
C) Having more current assets than current liabilities will yield a current ratio less than 1.
D) A high current ratio suggests good liquidity.
Correct Answer:
Verified
Correct Answer:
Verified
Q115: The characteristic shared by all liabilities is
Q126: A current asset is one that:<br>A)the company
Q127: Prepare a classified balance sheet for Purrfect
Q132: If a company uses $100 million in
Q133: What is the total of the CREDIT
Q134: Which of the following statements is TRUE?<br>A)Asset
Q135: Which of the following would not be
Q136: Which of the following would be listed
Q152: A company uses $100,000 in cash to
Q174: Transactions include which two types of events?<br>A)Direct