A Weakness of the Current Ratio Is

question 161

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:

Source Bias

The tendency of a source of information to lean towards a particular perspective or opinion, potentially influencing the objectivity of the information presented.

FCC

Stands for the Federal Communications Commission, which is a U.S. government agency regulating interstate and international communications by radio, television, wire, satellite, and cable.

Regulatory Power

Regulatory power is the authority granted to governmental agencies or bodies to establish and enforce rules and regulations governing the behavior of individuals, businesses, and other organizations.

Democratic Debate

An event or series of events where candidates from the Democratic Party present and argue their positions on various issues to the public and each other, typically during election campaigns.