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If a Company Has a Current Ratio of 0

Question 45

Multiple Choice

If a company has a current ratio of 0.82, which of the following statements would be true?


A) The company is a serious credit risk and should not be lent money.
B) The company's current ratio is below the industry average.
C) The company's working capital cannot be calculated.
D) The company's working capital is negative.

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