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The Current Assets of Rock Garden Gifts Were Considered Very

Question 114

Multiple Choice

The current assets of Rock Garden Gifts were considered very liquid at the end of the current year. This means that the company


A) has a larger quick ratio than current ratio.
B) must decrease its liquidity in order to appear more favorable to potential investors.
C) should attempt to borrow money in order to remain in business.
D) is able to pay its current obligations using its current assets.

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