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A Current Ratio of 2 to 1 Is Always Acceptable

question 83

True/False

A current ratio of 2 to 1 is always acceptable for a company in any industry.


Definitions:

Implied Warranty

A legal guarantee that a product will meet certain standards of quality and reliability even if not explicitly stated in a contract.

UCC

The Uniform Commercial Code, a comprehensive set of laws governing commercial transactions in the United States, designed to standardize and harmonize sales and commercial transactions across state lines.

Express Warranty

A written guarantee by the seller about the quality or performance of a product, provided at the time of sale.

Specific Performance

A legal remedy where a court orders a party to perform a specific act, often in lieu of damages.

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