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:

Crisis Management

The identification, assessment, and response to an immediate threat to an organization's operations or reputation, with the goal of minimizing damage and recovering swiftly.

Public Affairs

Activities focused on influencing public policy and building relationships with stakeholders and the community to support organizational objectives.

Federal Government

The national government of a federal country, responsible for the country's overall governance, and composed of executive, legislative, and judicial branches.

State Government

The governing body of a state within a federal system, responsible for local legislation and enforcement of state laws.