A Current Ratio of Less Than One Is Not So

question 40

Multiple Choice

A current ratio of less than one is not so much of a concern when the company has a:

• A)low fixed asset turnover ratio.
• B)high days to collect number.
• C)high inventory turnover ratio.
• D)high debt-to-equity ratio.

---

Definitions:

Illegal

Illegal refers to actions or activities that are forbidden by law and subject to legal penalties.

Bad News

Information that is unwelcome, disappointing, or negative in nature.

Whistle-Blowing

The act of exposing any kind of information or activity that is deemed illegal, unethical, or not correct within an organization by an employee or former employee.

Organization

An entity, such as a company, institution, or association, comprised of people and resources working towards common goals or objectives.