A Current Ratio Greater Than One Can Tell Us That

question 77

Multiple Choice

A current ratio greater than one can tell us that the company ________.

• A) should be able to cover the current liabilities
• B) should be able to keep away from short-term cash problems
• C) may have too much capital tied up in current assets
• D) All of these

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Definitions:

Ideal Size

The optimal dimensions or scale of an object, organization, or system to achieve maximum efficiency or performance.

Corporate Strategy

A comprehensive plan that outlines an organization's overall direction, goals, and approaches to achieve long-term success.

International

Pertaining to relationships between or involving two or more countries.

Merge

The combination of two or more entities into one, through either the acquisition or the pooling of interests.