Which of the Following Statements About the Current Ratio Is

question 206

Multiple Choice

Which of the following statements about the current ratio is most appropriate?

• A) A current ratio less than 1.0 is always unacceptable.
• B) A current ratio greater than 2.0 is normal.
• C) The determination of whether a current ratio is acceptable is best made by reference to industry norms.
• D) A current ratio greater than 1.0 is always acceptable.

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Definitions:

Mode

The value that appears most frequently in a data set, representing the highest peak in a distribution.

Hypothesis

A proposed explanation for a phenomenon, set forth as a starting point for further investigation through experimentation or observation.

Central Tendency

A statistical measure that identifies a single value as representative of the middle of a dataset, often the mean, median, or mode.

Bimodal Distributions

Probability distributions with two different modes or peaks, reflecting two dominant values in a dataset.