Which of the Following Statements Concerning the Current Ratio Is

question 90

Multiple Choice

Which of the following statements concerning the current ratio is true?

I. It is always larger than the acid-test (quick) ratio.
II. Companies can window-dress their current ratios.
III. In isolation the current ratio has little meaning.
IV. It is a good indicator of solvency of a company.

• A)I, II, III, and IV
• B)I, II, and III
• C)II, III, and IV
• D)I, II, and IV

---

Definitions:

Caring Moment

A specific point in time during which a caregiver and cared-for individual engage in a meaningful, compassionate interaction.

Unique Life Histories

The individual and distinct experiences and backgrounds that shape a person's life story.

Caritas Consciousness

A term from Jean Watson's Theory of Human Caring referring to a deep awareness of love and caring in the practice of nursing.

Moral Commitment

The binding adherence to ethical principles and standards of behavior.