Current Ratios of 1

question 92

Multiple Choice

Current ratios of 1.0 or less are considered ______.

• A) to show excessive liquidity
• B) low and indicative of potential financial problems
• C) average
• D) very positive

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Definitions:

T Distribution

A type of probability distribution that is symmetrical and bell-shaped like the normal distribution but has heavier tails, used especially for small sample sizes.

Degrees Of Freedom

The total count of values that can change in the ultimate calculation of a statistical figure.

Standard Normal Distribution

A bell-shaped distribution that has a mean of zero and a standard deviation of one, used in probability and statistics.

T-Distribution

A type of probability distribution that arises when estimating the mean of a normally distributed population in situations where the sample size is small and population standard deviation is unknown.