Which of the Following Statements Is False

question 73

Multiple Choice

Which of the following statements is false?

• A)A company generally prefers to have a high debt ratio.
• B)The current ratio measures the ability to pay current liabilities with current assets.
• C)The debt ratio measures a business's ability to pay both current and long-term liabilities.
• D)A company generally prefers to have a high current ratio.

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Definitions:

Steering Documents

Official papers that guide or direct policy, strategy, and other administrative actions.

Fundamental Doctrines

are core beliefs or principles that form the foundation of a system of thought or policy.

Tort Law

The area of law that deals with civil wrongs, providing remedies to individuals harmed by others' actions or failures to act.

Ethical Principles

Fundamental guidelines in ethics that inform and guide moral conduct in various fields and situations.