Multiple Choice
Which of the following is true of current ratio?
A) The more predictable a firm's cash flows, the higher the acceptable current ratio.
B) A higher current ratio indicates a higher return on equity.
C) The more predictable a firm's current ratio, the higher the current liabilities.
D) A higher current ratio indicates a greater degree of liquidity.
Correct Answer:

Verified
Correct Answer:
Verified
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