All of the Following Regarding Current Ratio Are True Except

Multiple Choice

All of the following regarding current ratio are true except:

A) Current ratio is calculated by dividing current assets by current liabilities.
B) Current ratio helps to assess a company's ability to pay its debts in the near future.
C) Current ratio does not affect a creditor's decision on when to allow a company to buy on credit.
D) Current ratio can affect a creditor's decision about whether to lend money to a company.
E) Current ratio can reveal problems in a company if it is less than 1.