A Weakness of the Current Ratio Is

question 161

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:

Message Content

The actual information or meaning conveyed in a communication act.

Inoculation Effect

A psychological phenomenon where exposure to a weakened form of an argument increases later resistance to that argument.

Persuasive Communication

The art of using language, arguments, and appeals to influence the attitude or behavior of others effectively.

Upward Appeal

A strategy of resolving disputes or making requests by escalating them to higher levels of authority within an organization.