A Current Ratio of 1

question 224

True/False

A current ratio of 1.2 to 1 indicates that a company's current assets exceed its current liabilities.

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Definitions:

Financing Activities

Cash flows related to actions that alter the equity or borrowings of an entity, reflecting how a business funds its operations and investments.

Issue of Shares

The issue of shares refers to the process by which a company distributes new shares to shareholders, which can raise capital for the company.

AASB 101

An Australian Accounting Standard Board regulation that sets out the overall requirements for the presentation of financial statements, guidelines for their structure, and minimum requirements for their content.

Non-Controlling Interests

A minority stake in a company that is not enough to exert control over it.