The Current Ratio Is a Less Stringent Test of Liquidity

question 53

True/False

The current ratio is a less stringent test of liquidity than is the quick ratio.

---

Definitions:

Church

A building used for public Christian worship or the organizational structure of religious Christian communities.

Physiocrats

A group of 18th-century economists who believed that the wealth of nations was derived solely from the value of land agriculture or land-based products.

Wealth

A measure of the value of all the assets of worth owned by a person, community, company, or country.

Land

The solid surface of the earth that is not covered by water, or the property and natural resources found on it, often considered in terms of ownership and use.