Multiple Choice
Which of the following statements is true of the current ratio?
A) The larger the current ratio, the harder it is for the firm to pay its shortterm debts.
B) Current ratio is classified under the leverage ratio.
C) A current ratio below 1.0 signifies a company's inability to pay its shortterm liabilities with its current assets.
D) Current ratio is computed by dividing the firm's current liabilities by its current assets.
Correct Answer:
Verified
Correct Answer:
Verified
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