Which Statement Is True Concerning the Current Ratio

question 122

Multiple Choice

Which statement is true concerning the current ratio?

• A)It is usually a larger amount than the acid-test ratio.
• B)It is a more stringent test of a company's ability to pay its short-term obligations.
• C)It measures a company's ability to manage its assets efficiently.
• D)It measures a company's ability to make interest payments on debt.

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Definitions:

Psychological Disturbance

A state of emotional, cognitive, or behavioral distress or dysfunction that interferes with daily life and wellbeing.

Social Conditions

Circumstances and factors that affect the social well-being and quality of life of individuals or communities, including health, education, and income.

Benzodiazapines

A class of psychoactive drugs known as tranquilizers, used mainly to treat anxiety, insomnia, and seizures.

Side Effects

Unintended reactions or consequences, often negative, occurring in addition to the desired effect of a medication or treatment.