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Which of the Following Statements Is Not True

question 100

Multiple Choice

Which of the following statements is not true?


Definitions:

Cash Ratio

A financial ratio indicating how well a company can cover its short-term obligations using its liquid assets.

Current Ratio

A financial metric that evaluates a firm's capacity to meet its short-term liabilities, which are due within a year.

Total Current Assets

The sum of all assets of a company that are expected to be converted into cash or used within one year or within the operating cycle.

Equity Multiplier

A financial ratio indicating the proportion of a company's assets that are financed by shareholders' equity, used to assess financial leverage.

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