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:

Rapport

A positive relationship or connection between people, characterized by mutual understanding, trust, and agreement.

Defamatory

Communication that damages the reputation of an individual or organization, potentially subject to legal action if proven untrue.

Outlining

The act of creating a structured summary or plan of a written work, speech, or project, highlighting its main points and subpoints in a logical sequence.

Concentration

Concentration is the mental effort directed towards focusing on one task or thought, excluding other distractions.