The Current Ratio Is a Less Stringent Test of Liquidity

question 53

True/False

The current ratio is a less stringent test of liquidity than is the quick ratio.

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Definitions:

Relationship

A connection, association, or involvement between people, entities, or concepts.

Record

An item of stored information, such as in a database, often consisting of multiple fields to represent different attributes of something.

Table

A collection of data organized in rows and columns, commonly used in databases and spreadsheets.

Field

In a database context, an area allocated for a specific piece of data, such as a name or address, within a record.