A Weakness of the Current Ratio Is

question 54

Multiple Choice

A weakness of the current ratio is

• A)the difficulty of the calculation.
• B)it uses year-end balances of current asset and current liability accounts.
• C)it is rarely used by sophisticated analysts.
• D)it can be expressed as a percentage, as a rate, or as a proportion.

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Definitions:

Communication Networks

A framework for how messages are transmitted and received within an organization, encompassing various modes and channels of communication.

Formal

Pertaining to or following established rules, procedures, or conventions, often in an institutional or official context.

Informal

Characterized by a relaxed, unofficial, or casual manner, not bound by formal rules, procedures, or etiquette.

Active Listening

The practice of paying close attention to a speaker's words, tone of voice, and body language to fully understand the communicated message.