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    Business
  3. Study Set
    Contemporary Accounting
  4. Exam
    Exam 10: Financial Statement Analysis
  5. Question
    A Company Has No Prepayments and Has a Current Ratio
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A Company Has No Prepayments and Has a Current Ratio

Question 59

Question 59

True/False

A company has no prepayments and has a current ratio of 0.98:1 and a quick ratio of 0.95:1. This indicates that the company cannot pay its debts if called upon to do so.

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