Which of the Following Statements Regarding the Current Ratio Is

question 81

Multiple Choice

Which of the following statements regarding the current ratio is true?

• A)The current ratio is calculated as the difference between current assets and current liabilities.
• B)Other things being equal,the lower the current ratio,the more assurance creditors have about being paid in full and on time.
• C)The current ratio is widely used to evaluate liquidity.
• D)The main components of the current ratio are cash and property,plant,and equipment.
• E)The comparison of a company's current ratio to the industry average is meaningless.

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Definitions:

Minimum Intergroup Conflict

A state where there is negligible or the lowest amount of conflict between different groups within an organization or society.

Multicultural Organization

An organization that incorporates and respects a variety of cultural perspectives, practices, and contributions in its operations and strategies.

Culture-Group Biases

The tendency to interpret and judge peoples' behaviors, cultures, or ideas from one's own cultural perspective, leading to bias.

Ethnocentrism

The tendency to view one's own culture as superior and to judge other cultures based on the standards of one's own.