Multiple Choice
Which of the following statements is an accurate interpretation of the current ratio?
A) A current ratio of less than 1.0 indicates that the company will probably have difficulty in paying its current liabilities on time.
B) A current ratio of more than 1.5 is a good current ratio and the company will probably be able to pay its current liabilities on time.
C) Both A and B are correct.
D) Both A and B are incorrect.
Correct Answer:
Verified
Correct Answer:
Verified
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