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:

Leonardo Da Vinci

A Renaissance polymath known for his contributions to art, science, and invention, including works like the Mona Lisa.

Vegetarian Diet

A dietary choice abstaining from consuming meat, fish, and sometimes, animal by-products, focusing on plants for food.

Americans

residents or citizens of the United States of America.

Meatless Diet

A diet that excludes all types of meat, including beef, poultry, and fish, often adopted for health, ethical, or environmental reasons.