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A Company Has a Current Ratio of Of 0

question 74

Multiple Choice

A company has a current ratio of of 0.85 to 1.What should a manager in the company worry about?


Definitions:

Impairment Loss

A reduction in the recoverable amount of a fixed asset or goodwill below its carrying amount, recognized as an expense.

Value in Use

The present value of future cash flows expected to be derived from an asset, indicating its utility to the owner.

Straight Line

A method of calculating depreciation and amortization that evenly spreads the cost of an asset over its useful life.

Sale Price

The amount of money for which a product, asset, or service is sold in the marketplace.

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