The Current Ratio Is Irrelevant in Liquidity Analysis for Service

question 5

True/False

The current ratio is irrelevant in liquidity analysis for service companies because they do not have inventories among their current assets.

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Definitions:

Satisfaction

The fulfilment of one’s wishes, expectations, or needs, or the pleasure derived from this.

Marginal Utility

The additional satisfaction or happiness gained from consuming an additional unit of a good or service.

Paint

A substance used to apply color or protection, consisting of pigment suspended in a liquid or paste medium such as oil or water.

Chicken

A type of poultry that is widely consumed around the world for its meat and eggs, and is considered a staple in many diets.