A Weakness of the Current Ratio Is

question 108

Multiple Choice

A weakness of the current ratio is

• A) the difficulty of the calculation.
• B) it uses year-end balances of current asset and current liability accounts.
• C) it is rarely used by sophisticated analysts.
• D) it can be expressed as a percentage, as a rate, or as a proportion.

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Definitions:

Emphasis

Special importance, value, or prominence given to something in speaking or writing.

Long Sentences

Sentence structures that are extended in length, often containing multiple clauses and complex information.

Faulty Parallelism

A grammatical error where parts of a sentence that are meant to be parallel in structure do not match in form or order.

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To explain or make something clear by using examples, pictures, or diagrams.