A Weakness of the Current Ratio Is

question 20

Multiple Choice

A weakness of the current ratio is

• A)the difficulty of the calculation.
• B)that it doesn't take into account the composition of the current assets.
• C)that it is rarely used by sophisticated analysts.
• D)that it can be expressed as a percentage, as a rate, or as a proportion.

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Definitions:

Self-Organizing Group

A group that forms and organizes itself naturally based on common interests or goals, often without a formal leadership structure.

Primary Group

A small social group characterized by close, personal, and enduring relationships, often significant in the development of social identity.

Shortest Duration

The minimum length of time that occurs from the start to the finish of a given event or process.

Personal Groups

Collections of individuals with whom one has personal relationships, characterized by direct interactions and emotional connections.