Which of the Following Statements Is an Accurate Interpretation of the Current

question 137

Multiple Choice

Which of the following statements is an accurate interpretation of the current ratio?

• A) A current ratio of 1.5 or higher is considered a high-risk ratio.
• B) A current ratio below 1.00 is considered a good and safe ratio.
• C) A current ratio of 2.0 indicates a strong ability to pay current liabilities.
• D) A current ratio of 0.60 or lower is a good and safe ratio.

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Definitions:

Corporate Social Responsibility

Corporate initiative to assess and take responsibility for the company's effects on environmental and social wellbeing.

Positive Impact

Beneficial effects or outcomes resulting from actions, activities, or policies on individuals, communities, or the environment.

Negative Impact

The adverse outcomes or effects that an action, decision, or event can have on an individual, community, environment, or organization.

Corporate Social Responsibility (CSR)

A company framework that includes social and environmental considerations within its operational activities and engagements with stakeholder groups.