Multiple Choice
Which of the following statements is false?
A) A company generally prefers to have a high debt ratio.
B) The current ratio measures the ability to pay current liabilities with current assets.
C) The debt ratio measures a business's ability to pay both current and long-term liabilities.
D) A company generally prefers to have a high current ratio.
Correct Answer:
Verified
Correct Answer:
Verified
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