Which of the Following Statements Is FALSE About the Current

question 131

Multiple Choice

Which of the following statements is FALSE about the current ratio?

• A)Instead of using the dollar amounts,the current ratio makes it easier to compare several companies.
• B)The current ratio is used to evaluate a company's ability to pay current obligations.
• C)Having more current assets than current liabilities will yield a current ratio less than 1.
• D)A high current ratio suggests good liquidity.

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Enriching Jobs

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