Which of the Following Statements About the Current Ratio Is

question 17

Multiple Choice

Which of the following statements about the current ratio is NOT true?

• A) The current ratio indicates whether the company has enough short-term assets to cover its short-term debts.
• B) An extremely high ratio is always a favourable sign.
• C) A ratio above 1 indicates that working capital is positive.
• D) The current ratio is calculated as current assets divided by current liabilities.

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Definitions:

Job Satisfaction

The level of contentment employees feel about their work, which can affect their performance, productivity, and willingness to stay in their jobs.

Personnel Utilization

The effective and efficient use of human resources within an organization to achieve its objectives.

Mental Stress

The psychological strain or tension that arises from demanding circumstances, often leading to a range of emotional and physical responses.

Motivational Approach

A strategy or method used to inspire and encourage individuals toward achieving certain goals or behaviors.